Legendary Value Investors
Benjamin Graham, Warren Buffett and John Templeton built fortunes by buying good assets for less than they were worth. Here is what each did, their best-known ideas and what their records show.
Benjamin Graham: the father of value investing
Benjamin Graham taught at Columbia and wrote “Security Analysis” (1934, with David Dodd) and “The Intelligent Investor” (1949). He introduced two lasting ideas: Mr. Market, a moody business partner who offers to buy or sell at wildly different prices each day, and the margin of safety, buying well below a conservative estimate of value to allow for mistakes.
Warren Buffett and Berkshire Hathaway
Buffett, Graham’s most famous student, turned Berkshire Hathaway from a textile mill into a giant holding company. From 1965 through 2024, Berkshire’s market value per share grew about 19.9% a year, compared with about 10.4% for the S&P 500 with dividends. Buffett stepped down as chief executive at the end of 2025; Greg Abel became CEO on Jan. 1, 2026, with Buffett remaining chairman.
A real chart: Berkshire Hathaway (BRK-B) daily bars, Sept. 2025 to Sept. 2026. Past performance does not predict future results.
Buffett’s evolution
- Early on, he bought statistically cheap “cigar butt” stocks, as Graham taught.
- With partner Charlie Munger, who died in 2023, he shifted to great businesses at fair prices.
- He favors durable competitive advantages, or moats, and honest, capable managers.
- His favorite holding period, he has said, is forever.
John Templeton: buying at maximum pessimism
In 1939, as World War II began, John Templeton borrowed money to buy 100 shares of each stock trading below $1 on U.S. exchanges, about 104 companies. Most of them made money over the next few years. He later pioneered global investing and summed up his approach as buying at the point of “maximum pessimism.”
Buffett looks for businesses protected by durable moats.
Key takeaways
- Graham introduced Mr. Market and the margin of safety.
- Berkshire compounded about 19.9% a year from 1965 to 2024.
- Greg Abel succeeded Buffett as CEO in 2026.
- Templeton bought during maximum pessimism.