Course
The Value Investors
Graham to Buffett — the published frameworks, with their arithmetic and their limits.
Intermediate6 lessonsabout 34 minContent checked
Six frameworks that survive because they were written down and can be checked. The price-led screens first — Graham’s floor, Greenblatt’s ranking, Lynch’s growth at a price — then the returns-led readings: Buffett’s owner tests, his partnership-era inversion, and the DuPont decomposition of return on equity.
Module 1 — Price First
- 1. The Graham Number and NCAVBenjamin Graham's two defensive value tests — a ceiling price built from earnings and book value, and the liquidation-value floor he called a net-net.5 min
- 2. Greenblatt Rank — quality and cheapness togetherJoel Greenblatt's two-factor ranking pairs return on capital with earnings yield, on the argument that either one alone selects a trap.5 min
- 3. Lynch — PEG, fair value, and the six categoriesPeter Lynch's growth-at-a-reasonable-price rules, including the one most people skip — that the rules only apply to some of the six kinds of company he defined.6 min
Module 2 — Returns First
- 4. Buffett — ROE, ROIC, the dollar test and owner earningsFour measures Buffett returns to in the Berkshire letters, and what each is actually asking about a business rather than about its share price.6 min
- 5. The two Buffetts — partnership era and moat eraBefore wonderful businesses at fair prices, Buffett ran a Graham-school deep-value partnership buying statistically cheap securities and special situations. The two playbooks screen for almost opposite things.6 min
- 6. DuPont — what actually drives return on equityA 1919 identity that splits ROE into margin, asset turnover and leverage, so you can see whether a high return is earned by the business or manufactured by the balance sheet.6 min