[pmart123]

You know, I think the thing that is interesting is Buffett never really was as resolute in Dodd's philosophy as many of the famous long/short investors who have struggled recently seem to be. Buffet evolved as an investor:

1. He recognized the multiplicative power of combining the insurance float alongside his stellar investment ability.

2. He recognized the power of moat and brand value vs. Graham and Doddsville.

3. He saw the value in return on capital over purely P/E for a growing business from Sees Candy.

As an aside, one reason long/shorts have had a tough time is that low rates make it harder to generate an automatic 6% return on your short book.

But, I believe many value investors have failed to understand how technology and network-based platforms work. P/S works better for AMZN than P/E when the CEO is trying to minimize E. NFLX could have lower its P/E to 20 if it charged $15/month last December. FB just had to monetize its platform by something like a couple dollars per user right after it IPO'd. I think many traditional value investors did not understand or adapt their thinking regarding stickiness, revenue per user expansion, fixed costs for platform-based businesses, and redefining what tangible and intangible asset value is.

There's an almost stubbornness to many of these investors versus a curiosity to listen to an alternative viewpoint.