Applying Value Investment Strategies to CRE

WALNUT CREEK, CA—The most successful stock/bond investors like Warren Buffett of Berkshire Hathaway, Seth Klarman of Baupost, Chris Browne of Tweedy Browne, Ben Graham, Peter Lynch of Fidelity, Bill Ruane of Sequoia Fund, Walter Schloss and others, are value investors. Value investors seek to buy stocks/bonds at 50-60 cents on the dollar and use rigorous fundamental analysis to discover these hidden gems.

It is a very difficult business because these value investors don’t follow the heard of Wall Street and institutional investor mentality and many times take contrarian positions. Sometimes they buy a security at a discounted value and have to wait years for the true intrinsic value to be realized.