Influence
Graham-and-Doddsville influenced Seth Klarman's 1991 Margin of Safety and was cited by Klarman as a principal source; "Buffett's argument has never, to my knowledge, been addressed by the efficient-market theorists; they evidently prefer to continue to prove in theory what was refuted in practice". Klarman's book, never reprinted, has achieved a cult status, and sells for four-digit prices.
Buffett's article was a "titular subject" of 2001 Value Investing: From Graham to Buffett and Beyond.
In 2005 Louis Lowenstein compiled Graham-and-Doddsville Revisited – a review of the changes in mutual fund economics, comparing the Goldfarb Ten funds against Buffett's value investing standard. Lowenstein pointed out that "value investing requires not just patient managers but also patient investors", since value investing managers have also demonstrated regular drops in portfolio values (offset by subsequent profits).
Read more about this topic: The Superinvestors Of Graham-and-Doddsville
Famous quotes containing the word influence:
“Just what is the civil law? What neither influence can affect, nor power break, nor money corrupt: were it to be suppressed or even merely ignored or inadequately observed, no one would feel safe about anything, whether his own possessions, the inheritance he expects from his father, or the bequests he makes to his children.”
—Marcus Tullius Cicero (106–43 B.C.)
“They tell us that women can bring better things to pass by indirect influence. Try to persuade any man that he will have more weight, more influence, if he gives up his vote, allies himself with no party and relies on influence to achieve his ends! By all means let us use to the utmost whatever influence we have, but in all justice do not ask us to be content with this.”
—Mrs. William C. Gannett, U.S. suffragist. As quoted in History of Woman Suffrage, vol. 5, ch. 8, by Ida Husted Harper (1922)
“The private life of one man shall be a more illustrious monarchy,—more formidable to its enemy, more sweet and serene in its influence to its friend, than any kingdom in history. For a man, rightly viewed, comprehendeth the particular natures of all men.”
—Ralph Waldo Emerson (1803–1882)