Walter Schloss (นักลงทุนเน้นคุณค่าระดับโลก)
โพสต์แล้ว: อาทิตย์ ม.ค. 19, 2014 12:52 pm
Walter Schloss บริหารกองทุนห้างหุ้นส่วน ตั้งแต่ ปี 1956 - 2002 ตลอด 47 ปี ทำผลตอบแทนทบต้นได้ 15.3% เหนือกว่าดัชนี S&P ที่ทำได้ประมาณ 11% การลงทุนตลอดระยะเวลายาวนานและได้ผลตอบแทนขนาดนั้น ไม่ใช้เรื่องง่ายครับ การลงทุนแนว VI ผมว่าต้องพิสูจน์กันระยะเวลายาวครับ
Walter Schloss....Walter Schloss is a role model for all aspiring value investors. He is the most influential investor to me personally based on his 5 decade long performance as well as his investing style. Schloss was a compounding machine that hit base hit after base hit. He was the Ted Williams of investing.
Read more of my thoughts on Walter Schloss here.
Below, you can also find my notes on his bio as well as many informative links to other articles that have been written on Schloss. He is likely my favorite investor to study and read about.
Bio Highlights:
•Returns of 20% per year for 47 years (15.3% net to his investors, double the 7% return of the S&P during that period).
•High school graduate without a college degree
•First got a job on Wall Street at age 18 in 1934 as a runner. Wanted to learn investing and got a piece of key advice from a mentor: “Read Graham and Dodd’s Security Analysis, and that’s all you’ll need to know”
•Later worked for Ben Graham at Graham-Newman, spending his time methodically looking for cheap stocks
•After Graham decided to retire and close his fund, Schloss started his partnership with 19 partners and $100,000 of capital in 1955
•Operated a solo-operation until his son Edwin later joined him. The two of them never had any other employees, despite managing 9 figures later in their career (in one of his later years, his firm made $19 million in profits against just $11,000 of expenses!)
•Famous for being frugal, simple. He worked out of the same small one room office for the entire duration of his career. Never owned a computer, never used the internet.
Schloss Investment Philosophy:
•Methodical, value based investor. Schloss and his son Edwin famously summed up their investment philosophy in one sentence: “We buy cheap stocks”
•Followed a Graham style value approach to investing throughout his entire career
•Schloss would use Value Line for info on companies, and would send for their annual reports to dig deeper
•Rarely talked to management, choosing to invest only on the numbers. Specifically, he liked to look at the assets (book value) more than the income statement.
•He liked to buy stocks at low price to book ratios, and when he did look at earnings, he liked low prices to normalized earnings
•He liked stocks with long (15-20 year) histories and track records. He would study how earnings and asset values fluctuated over various cycles. He liked using the balance sheet because “asset values fluctuate more slowly than earnings do”
•Diversified, cheap basket of stocks was his strategy for risk. He repeatedly said “I don’t like losing money”.
•Schloss often owned 60 stocks or more at a time, sometimes as many as 100. Schloss occasionally would concentrate up to 10% or more of his fund on a stock that he really liked. But he mainly liked to own a lot of stocks because he claimed not to be a good judge of business trends or management capability (as opposed to Warren Buffett). So he needed to take a diversified approach so he could “sleep well”.
•He owned his stocks for an average of 4 years
Schloss is one of my favorite investors of all time. I love his methodical, common sense approach to investing. He provides a road map for long term success. Buy value, diversify adequately (but not excessively), be patient. What I like most about Schloss is the way he ran his business. His typical office hours were 9am-4:30pm. He came in, looked through Value Line for cheap stocks and read annual reports. He has said that this passive style of investing has enabled him to live a low-stress life, and has allowed him to continue to invest as he got older. He said that while others had higher rates of returns at times, he was able to outlast them, and thus achieve a longer track record because his style of investing was enjoyable and easy to maintain. He contrasted his approach to that of Peter Lynch, who had to retire after 13 years of managing Magellan because he was spending so much time working and traveling, visiting companies, etc… Schloss’ style of investing could be replicated by most people, if they have the temperament and patience that Schloss had.
Schloss is not as widely acclaimed as most investors are with similar track records, but Schloss made a point to stay out of the spotlight throughout his career. Because of this, there is not a lot of material to study on Schloss’ investment ideas. But below are some key articles that I could locate that reveal how good Schloss was. Some of them were written or transcribed from Schloss’ own public appearances. They portray Schloss as a simple man that sticks to his strategy regardless of the noise around him. I strongly recommend studying Walter Schloss in as much detail as possible. He is an example that investing success can be achieved through a methodical application of simple, replicable investing principles.
Walter Schloss....Walter Schloss is a role model for all aspiring value investors. He is the most influential investor to me personally based on his 5 decade long performance as well as his investing style. Schloss was a compounding machine that hit base hit after base hit. He was the Ted Williams of investing.
Read more of my thoughts on Walter Schloss here.
Below, you can also find my notes on his bio as well as many informative links to other articles that have been written on Schloss. He is likely my favorite investor to study and read about.
Bio Highlights:
•Returns of 20% per year for 47 years (15.3% net to his investors, double the 7% return of the S&P during that period).
•High school graduate without a college degree
•First got a job on Wall Street at age 18 in 1934 as a runner. Wanted to learn investing and got a piece of key advice from a mentor: “Read Graham and Dodd’s Security Analysis, and that’s all you’ll need to know”
•Later worked for Ben Graham at Graham-Newman, spending his time methodically looking for cheap stocks
•After Graham decided to retire and close his fund, Schloss started his partnership with 19 partners and $100,000 of capital in 1955
•Operated a solo-operation until his son Edwin later joined him. The two of them never had any other employees, despite managing 9 figures later in their career (in one of his later years, his firm made $19 million in profits against just $11,000 of expenses!)
•Famous for being frugal, simple. He worked out of the same small one room office for the entire duration of his career. Never owned a computer, never used the internet.
Schloss Investment Philosophy:
•Methodical, value based investor. Schloss and his son Edwin famously summed up their investment philosophy in one sentence: “We buy cheap stocks”
•Followed a Graham style value approach to investing throughout his entire career
•Schloss would use Value Line for info on companies, and would send for their annual reports to dig deeper
•Rarely talked to management, choosing to invest only on the numbers. Specifically, he liked to look at the assets (book value) more than the income statement.
•He liked to buy stocks at low price to book ratios, and when he did look at earnings, he liked low prices to normalized earnings
•He liked stocks with long (15-20 year) histories and track records. He would study how earnings and asset values fluctuated over various cycles. He liked using the balance sheet because “asset values fluctuate more slowly than earnings do”
•Diversified, cheap basket of stocks was his strategy for risk. He repeatedly said “I don’t like losing money”.
•Schloss often owned 60 stocks or more at a time, sometimes as many as 100. Schloss occasionally would concentrate up to 10% or more of his fund on a stock that he really liked. But he mainly liked to own a lot of stocks because he claimed not to be a good judge of business trends or management capability (as opposed to Warren Buffett). So he needed to take a diversified approach so he could “sleep well”.
•He owned his stocks for an average of 4 years
Schloss is one of my favorite investors of all time. I love his methodical, common sense approach to investing. He provides a road map for long term success. Buy value, diversify adequately (but not excessively), be patient. What I like most about Schloss is the way he ran his business. His typical office hours were 9am-4:30pm. He came in, looked through Value Line for cheap stocks and read annual reports. He has said that this passive style of investing has enabled him to live a low-stress life, and has allowed him to continue to invest as he got older. He said that while others had higher rates of returns at times, he was able to outlast them, and thus achieve a longer track record because his style of investing was enjoyable and easy to maintain. He contrasted his approach to that of Peter Lynch, who had to retire after 13 years of managing Magellan because he was spending so much time working and traveling, visiting companies, etc… Schloss’ style of investing could be replicated by most people, if they have the temperament and patience that Schloss had.
Schloss is not as widely acclaimed as most investors are with similar track records, but Schloss made a point to stay out of the spotlight throughout his career. Because of this, there is not a lot of material to study on Schloss’ investment ideas. But below are some key articles that I could locate that reveal how good Schloss was. Some of them were written or transcribed from Schloss’ own public appearances. They portray Schloss as a simple man that sticks to his strategy regardless of the noise around him. I strongly recommend studying Walter Schloss in as much detail as possible. He is an example that investing success can be achieved through a methodical application of simple, replicable investing principles.
