Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio’s market value.
This approach has worked
What is ‘investing’ if it is not the act of seeking value at least sufficient to justify the amount paid?
A high ratio of price to book value, a high price-earnings ratio, and a low dividend yield – are in no way inconsistent with a ‘value’ purchase.
Today’s FAAMGNs, that is today’s ‘vital few’, will not be the ‘vital few’ 20 years from now
If a company’s capital expenditures are simply maintaining the company’s position in its markets, it free cash flow may be unduly high
About forty years ago Buffett experienced a Damascene conversion
We are going to want to get a significantly higher return, obviously — in terms of cash produced relative to the amount we’re outlaying now — for a business than we are from a government bond. That has to be the yardstick at a base.
Prices in the stock market are never a reliable guide to the fair value of a stock.
There is a lot of talk currently about the underperformance of value stocks compared with growth stocks over the last fifteen years. In fact, value investing has performed well against all other styles. This seeming contradiction comes from the fact that value investing and investing in value stocks are not the same thing.