Burgundy is a self-described quality-value investor, but what does that really mean? What other value styles exist, and where does Burgundy fall within this sphere? Derived from a speech delivered at the London Value Investor Conference in May, the latest edition of The View from Burgundy, “Confessions of a Buffetteer,” tackles these questions.
While all value tribes are rooted in the ideas of Ben Graham, most notably the concept of margin of safety, they differ in many respects. Richard Rooney, President and CIO, focuses his attention on two of these tribes:
- The “Orthodox” – the statistical-value tribe, founded by Ben Graham
- The “Buffetteers” – the quality-value tribe, led by Warren Buffett
They differ in substantial ways, but on closer inspection we can see how Graham laid the path for the Buffetteers, and where the similarities between these two tribes lie. Moreover, in certain situations it is possible for the styles to be used in complement to one another, illustrated by Burgundy’s foray into Japanese investing in the late 1990s.