“Whether we are talking about socks or promotions, I like to buy a quality product when it
— Warren Buffett.
When you buy, say, socks, the first thing you look at is the quality. You want socks that are comfortable, fit your feet, and preferably last a long time. You also want these socks to be at a good price. But if you can find high quality socks at a 50% discount price, you’ve hit the jackpot. When it comes to buying stocks, the value investor will use the same principles: invest in high quality growth companies at discount prices. In this article, I will outline the main principles that guide the value investor.