For True Value Investing, Look to Warren's Teacher

Much of the focus of the alleged value-investing world has turned its eyes toward Omaha, Neb., this week as capitalist Super Bowl that is the Berkshire Hathaway (BRK.A) annual meeting kicks off -- and the faithful have come to genuflect and buy stuff. Endless amounts of ink has been and will be devoted to what Warren says and does at the meeting. However, I personally do not think the man has been a real value investor for decades now. He is more of a private-equity guy in disguise, and his activities and advice don't apply as much to the individual investor today as they once did.

I will have more to say on this later in the week, but for now I want to focus on the man who taught Warren the basics of investing. Buffett used the Ben Graham cheap­-stock approach to build the first part of the fortune that is Berkshire today, and those techniques can still be used by most of us now. Buying stocks that trade for less than asset value, and with a margin of safety, still constitutes a successful investing approach. The strategy gives individuals an edge they can use to profit even in today's snake pit of a stock market....541 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.