Warren Buffett has always been identified as a “value investor” but those who have studied his investing career know that it is not so easy to pigeonhole his true investing style. This should not come as a particular surprise since it is obvious that an investing outlier such as Mr. Buffett must have applied unique insights over the years. According to Prem Jain, author of Buffett Beyond Value, Mr. Buffett’s true investing style is “value + growth”. In other words, the goal is to find investments that offer solid prospects of future growth while also providing substantial downside protection.
Prem Jain published a brief article today summarizing his views on Warren Buffett’s investing style. Here is a brief excerpt:
His style has evolved over the years and incorporated strategies of growth investing. For this reason — having taught his principles for 20 years and benefited from them personally, and as author of an exploration of his investing principles called “Buffett Beyond Value” — I call him a “value + growth” investor rather than a value investor alone.
For more information regarding the evolution of Mr. Buffett’s investing style, please see our essay From Cigar Butts to Business Supermodels which is part of the introduction to The Rational Walk’s widely acclaimed Berkshire Hathaway Briefing Book.
Disclosure: The author of this article owns shares of Berkshire Hathaway.