[adthomsen]

I have only recently started reading about investment and the concept of value investing and your comment doesn't seem to encapsulate what I've understood.

There are also things like the company's management and how they run the company. It's about looking for "wonderful companies" at a good price.

I'm not saying which investment strategy is better or worse, just that I believe there is a lot more to Buffet's idea of value investment than you imply.

[divbzero]

You and GP are both right but simply referring to different definitions of value investing.

GP is using “value” in the traditional Benjamin Graham sense of companies that are quantitatively undervalued based on current financial statements. This is the definition used on Wall Street for “value” ETFs or mutual funds.

You’re referring to Warren Buffett’s expanded definition of “value” as any company priced below intrinsic value, which can include qualitative judgment of future growth.

You both make the point that Buffett’s approach deviates from the traditional Wall Street definition of “value”.

[valuearb]

The definition of intrinsic value comprises everything you mention and more, such as strength of companies moats. I didn’t want to write a dissertation.

And the least important factor for long term value is strength of management. GE was renowned as the greatest managed company in the world before Immelt. You want a business any idiot can run, because eventually one will.