Posted by calvintaneng > 2014-05-18 09:27 | Report Abuse

After Benjamin Graham I think I like Walter Schloss more than Warren Buffet.

1) Walter Schloss is a Deep Value Hunter. He doesn't care whether it is monday or friday, the beginning or ending of the month or what time of the year. He will buy up Cheap Undervalued Stocks as long as he is able to unearth them. And hold on to them until VALUE EMERGE SOMEDAY.

2) And since most Undervalued Stocks Are ALWAYS UNPOPULAR he did not even want to disclose them to his Investors. Walter manages investments for over 90 individuals or corporations.

Some having learnt what Walter bought in his Portfolio might Get A Shock by Walter's Stock Selection on SO UNPOPULAR STOCKS That THEY WITHDRAW THEIR FUNDS AND GO ELSEWHERE. So For The Most Part Walter Try Not To Reveal To His Investors What He Bought - mostly out of favour stocks.

And Walter Schloss did very well for a very long stretch of over 40 years. He only under performed for 7 years out of 40.

3) The Office of Walter Schloss is very modest. A very tiny office with old worn out table and chair. He has an old type writer. The entire set up cost less the $3,000. (Warren Buffet bought a 2nd hand car although he could afford to buy up all the New Car Companies in USA.)

This mentality of avoiding unnecessary spending and wastage and putting Cash into compounding investment has resulted in over 20% growth for a 40 long year stretch in Value Investing.

3) And Walter and his son keep to themselves for most of the time. They seldom communicate with others for 2 reasons:

i) Since Most Value Stocks Are Out of Favour due to some problems The Investing Public Shun Them. So there is little in common between Walter Schloss & Mr. Market. They wouldn't understand Walter. They most probably criticize and reject him.

ii) By not disclosing his stock picks to others Walter hope to get them cheaper. His sifu Benjamin Graham is very generous in telling the next tips. And so before Ben could buy more - others have loaded up and Ben has to pay higher prices or he will miss the chance himself.

4) STRESS FREE

I think this is what I like best about Walter. Peter Lynch did very well. But the heavy stress took a toll on Peter and his hair turned grey prematuredly. He has to go into early retirement to preserve his life.

For Walter he has A Very Solid Portfolio Backed by HUGE MARGIN OF SAFETY. No fear of Market Crash as THEY ARE HIGHLY DEFENSIVE. And 40 Years of Investment Success Is A Testament That Value Investing Is The Way To Go.

However, the majority of the people has an ingrained perversity to Avoid Value Investing because they called it as "Problem companies", "Value Traps" or any such negative stuff that must be avoided by all means.

Only a very few will chose to follow the unpopular style of Walter Schloss in a lonely path of patient waiting. But I am definitely one of them so count me in.

Posted by kheng > 2014-05-18 09:32 | Report Abuse

Calvin n Walter r from the same mold but the latter is more reclusive n stay in low profile in comparing with the former.

Posted by stockoperator > 2014-05-18 12:19 | Report Abuse

Good Business is far and few whereas company with deep value asset is near and many. I always say Business and Business has to compete for 20 years then you know the results. I think KC has shown the tabulation of results in the earlier articles. Anyway that is besides the point as the ultimate aim is 20% return for long period of times.

Posted by 林俊松 > 2014-05-18 12:27 | Report Abuse

"I don’t like stress and prefer to avoid it, I never focus too much on market news and economic data. They always worry investors!"
I love this sentence!!!

Posted by stockoperator > 2014-05-18 12:52 | Report Abuse

The tabulation of results is under article Why Value Investing works date 27th April 2014.

Well that is besides the point as the point is to have consistent high return over long period of time.

Walter did mention who else can invest as Warren did in Business Value, i agree. Well on the other hand who can invest 60-100 stocks in the market, I doubt as well.

Nonetheless, it provides a platform for New generation to work on it. And never lose sight on core value of investment.

Posted by stockoperator > 2014-05-18 13:05 | Report Abuse

I would suggest KC compiles all articles in a Book and promote them to new young generation.

Posted by kcchongnz > 2014-05-18 13:24 | Report Abuse

stockoperator,
will you buy my book then?

Posted by stockoperator > 2014-05-18 13:47 | Report Abuse

Surely, i am compiling your articles. Write a good one ya. And I am working on your few models.

Posted by choop818 > 2014-05-18 15:10 | Report Abuse

KC your write ups always make alot of sens. Please excuse the pun.