He believed, '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'. The book was cited by Klarman as a principal source for his best seller. The вЂGraham-and-DoddsvilleвЂ™ speech from Buffett influenced billionaire investor Seth Klarman's 1991 book called Margin of Safety. and those who read their Graham and Dodd will continue to prosper,вЂќ said Buffett. Ships will sail around the world, but the Flat Earth Society will flourish. 'There seems to be a perverse human characteristic that likes to make easy things difficult. Third, after looking at the background of seven successful managers, Buffett came to the conclusion an individual either accepts value investing strategy at first sight, or never accepts it, regardless of training and other people's examples.Second, potential returns diminish when the size of a fund increases, as the number of undervalued stocks decreases.On the opposite end, as margin gets thinner, risks increases. This is the вЂMargin of SafetyвЂ™ principle at work. He underscored GrahamвЂ“Dodd's premise: the higher the margin between the price of undervalued stock and its value, the lower an investorвЂ™s risk.You could say, without doubt, the managers were truly independent of each other.Д«uffett made three side notes in his speech concerning value investment theory: Ruane, Charles Munger, Rick Guerin, Stan Perimeter and 11 managers from two funds steering funds for the Washington Post and FMC Corporation super funds.Д«uffett took special care to explain the nine funds had little in common but for a value strategy and some personal connections. Schloss, Tom Knapp, Warren Buffett, William J. The names included in BuffettвЂ™s speech were Walter J. They all followed value investing rules founded by Graham and Dodd 50 years prior. He made note of a вЂstatistically significantвЂ™ share of the winning minority-the nine investment funds-and their allegiance to the same school of security analysis. And the same happened in real financial markets (according to him).Д«uffett grabbed Jensen's metaphor and started his own speech with the same coin tossing experiment. Jensen argued a simple coin tossing experiment among a large number of investors would generate a few successive winners. It was a showdown with Michael Jensen, a University of Rochester professor and devotee of the efficient-market-hypothesis. The speech from Buffett was part of a contest. And each fund was invested in different assets and stocks. The speech and article challenged the idea that equity markets are efficient by using a study of nine successful investment funds generating long-terms returns above the market index.ДЄll these funds were managed by disciples of Benjamin Graham following the same вЂGraham-and-DoddsvilleвЂ™ value investing strategy. The article was based on a speech he gave at Columbia University Business School in May the same year. Warren Buffet wrote an article to celebrate this milestone called вЂњThe Superinvestors of Graham and Doddsville.вЂќ Each may invest in different assets and securities but almost all of them look through the prism of a business-owner when buying a share, and, not coincidentally, a significant number of them are alumni of the Benjamin Graham School of investment and analysis.ДЎ984 marked the 50 th anniversary of Benjamin Graham and David Dodds book titled Security Analysis-the bible of value investing. ItвЂ™s no coincidence some of the greatest investors of all time are prophets of value investing.

Superinvestors of graham and doddsville