Value Links of Interest

Despite years of research we haven’t been able to come up with a reliable measure of the discount rate — the so-called cost of capital — and the long-term growth rate for these models is anyone’s guess. Cost of capital estimates are speculative, and that inherent uncertainty is only magnified by hypothetical growth rates.

Can We Better Account for Value? by Jame Steinberg (Columbia Business School)

Philip Carret may not be a household name in Britain but Warren Buffett called him “one of my heroes” and said he had “the best long-term investment record of anyone in America”.

How to invest like… Warren Buffett's hero Philip Carret by Amanda Leek (The Telegraph)

Considering the popularity of value investing, it is somewhat surprising that this paper published in 2014 in the Journal of Investing was the first formal attempt to categorize the development of value investing over time. It summarizes the categorization of value investing’s past and present and offers suggestions on what its future may hold.

The Evolution Of Value Investing: Past, Present and Beyond by Joseph Calandro, Jr.
and Frederick J. Sheehan (PDF File)

For Warren Buffet's most devoted followers, a meal at Gorat’s Steak House is near the apex of the visit to Omaha for the Berkshire Hathaway annual meeting. After five days in Omaha, I still don’t understand what Buffett’s disciples hope to learn by copycatting his food choices. 

What Would Warren Do? by Megan McArdle (The Atlantic)

I’ve heard a great many fund managers over the years saying they invest in the same sort of way as Bolton, but if they really did we’d probably hear a great deal less about how unique Bolton’s performance is. The same is true of those who style themselves after America’s famous value investor Warren Buffett.

How to be a value investor like Warren Buffett by Merryn Somerset Webb (Moneyweek)