Buffett's Principles Are Still Sound

I have read quite a bit about Buffett's early investment philosophies, and I have often consulted his letters for insights, but I could not recall actually reading any all the way back from 1957. So I began reading them, and I was struck by how, at his early age, he was formulating and articulating principles that now stand as timeless investment theories. Here are a few that jumped off the page at me.

[1957] "Our performance, relatively, is likely to be better in a bear market than in a bull market…" This is true of value investing generally. Value stocks tend to have lower betas than growth stocks, so value stocks tend to outperform in price when the market is doing poorly and underperform when it is doing well. Again, market action is not really Buffett's main focus, but here he was trying to explain to his early investors what they should expect from his investing partnership.

Source: Seeking Alpha

Related Articles:
- 11 Low-Debt, Higher-Yielding Dividend Stocks
- 7 Small-Cap, High-Yield Dividend Stocks
- 10 High-Energy, High-Yield Dividend Stocks
- 12 Dividend Stocks For A Powerful Income Stream
- 7 Dividend Stocks Sporting A Five-Star Rating