28 February 2010

Great Investor -- Walter Schloss.

One of the greatest successor of Graham's value-investment philosophy.

It's because of him, that I had decided to start an experimental portfolio applying Graham's net-working-capital strategy. During his investment lifetime of nearly 50 years, Walter had achieved an incredible return rate of about 20% p.a..

Yet, a lots of people never heard about him.

So, this is a short introduction about Walter Schloss (more precisely, a short summary of what I've read about him on the internet).


Walter never went to college. He was employed and worked in Graham's firm for nearly ten years. When Graham decided to retire and winding up his firm on 1955, he introduced Walter to some of his clients. And that's how Walter started his own career, with a "net-working-capital" fund.

Walter's investment style is very different from Warren Buffett's. While picking stocks, Walter focus only on tangible asset. He always had a well diversified portfolio, holding more than 100 stocks most of the time.

Walter describe himself as:

  • doesn't like to lose money.
  • doesn't understand business.
  • not good in judging people.
  • didn't visit the companies that he invest, or talk to the management.
  • never predict the market, never bothered about economics.
  • likes to invest in company that has very little or no debt.
  • likes to see that a big portion of a company's stock owned by the management.
  • likes to buy companies that are facing problem. (when their earnings and dividends drop)


Anybody who likes to understand more about Walter, here's some good links:


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