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5 Lessons From Walter Schloss

Amasterofdeepvalue,Schlossisregardedasoneofthebestvalueinvestorsever
September16,2016

Morethan500,000peoplehavealready
WalterSchlosswasoneoftheworldsgreatestvalueinvestors.ItcouldevenbesaidthatSchloss
joinedGuruFocustotrackthestocks
achievedabettertrackrecordofdeepvalueinvestingthanhisteacher,mentorandgodfatherof
valueinvesting,BenjaminGraham. theyfollowandexchangeinvestment
ideas.
WalterSchlosscareermanagingmoneylastedfrom1955to2002andbyhisestimate,his
investmentsreturned16%perannum(afterfees)comparedtoareturnof10%perannumforthe
EmailAddress
S&P500overthesameperiod.

Schlosswasatraditionaldeepvalueinvestor,astylehefollowedhisentirelife.Stocksonly Password
interestedSchlossiftheyweretradingata52weeklowandadeepdiscounttobookvalue.He
placedasignificantamountoffocusonacompanysmanagement.IfSchlossbelievedacompanys SignUpNow(Free)
managementwasbehindthestockpricedecline(bymakingpoorinvestmentdecisions)hewould
avoidthestock.

Performancesofthestocksmentionedby
RupertHargreaves

Current Gain
Symbol Company Change(%)
Price (%)

IEP IcahnEnterprisesLP $ 51.50 1.60(3.21%) 1.12%

XRX XeroxCorp $ 28.50 0.71(2.55%) 0.49%

CVI CVREnergyInc $ 20.46 0.47(2.35%) 1.64%

CHK ChesapeakeEnergyCorp $ 5.10 0.10(2.00%) 7.1%

LNG CheniereEnergyInc $ 47.28 0.69(1.48%) 1.9%

CAT CaterpillarInc $ 107.60 1.20(1.13%) 13.87%

ARII AmericanRailcarIndustriesInc $ 36.44 0.40(1.11%) 16.5%

FOXA TwentyFirstCenturyFoxInc $ 27.45 0.29(1.05%) 10.59%

CW CurtissWrightCorp $ 92.97 0.81(0.88%) 0.66%

PYPL PayPalHoldingsInc $ 51.84 0.45(0.86%) 16.63%

Summary 1.28% 0.02%

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https://www.gurufocus.com/news/443817/5lessonsfromwalterschloss 1/4
6/17/2017 5LessonsFromWalterSchlossGuruFocus.com
JustasGrahamadvised,Schlossalwayshadawelldiversifiedportfolioofdeepvalueequitieswith pbarker46 FScoreCdn&BVGrowth
Home Screeners Gurus Insiders Market Articles Conference
upto100stocks.Eachstockneveraccountedformorethan20%ofhisoverallportfolio.Each Subscribe FScore&BVGrowth
pbarker46 LogIn Tutorials
holdingwasweightedinSchlossportfolioaccordingtoitsperceivedvalue. jamclau myscreen25
Search EnterTicker,Guru,Company,etc.Go MyPortfolios MyGurus Get7DayFreeTrial
jamclau 3yearlow
Whenitcametoselling,Schlosswouldwaitfor
WarrenBuffettRecentBuys
thestocktoriseby50%beforejumpingout.
dguibert Global
WarrenBuffett'sCurrentPortfolio gchyatt Stalwartsw/2.5%Yield
Thissimplerulewasimplementedtokeephis
emotionsoutofthepicture.
ThisPowerfulChartMadePeterLynch29%
AYearFor13Years GuruNews
Allinall,Schlosswasadisciplinedinvestor
andcommittedtodeepvalueforhisentire WithOilPricesCratering,ValueGurusBettheMoston
investingcareer.TodaysvalueinvestorscanlearnalotfromSchlosswritings,herearefivekey TheseEnergyStocksbyHollyLaFon

traitsandtipsabouthisdeepvaluestrategy. TechStocksReportLossesfortheWeekbyJulieYoung
KrogerReports1stQuarterResultsbyAlbertoAbaterusso
PlaytoYourStrengthsandDoWhatYouFeelComfortableWith. What'sGoingOnWithThis$11BillionTechLeader?byOmar
Venerio

...PeterLynchvisitedliterallythousandsofcompaniesanddidasuperbjobinhispicking.Ineverfeltthatwecoulddo
thiskindofwork...therefore,wentwithamorepassiveapproachtoinvestingwhichmaynotbeasprofitablebutif ValueIdeas
practisedlongenoughwouldallowthecompoundingtooffsetthefellowwhowasrunningaroundvisiting
managements...Ialsolikedtheideaofowninganumberofstocks.WarrenBuffett(Trades,Portfolio)ishappywith InstalledBuildingProductsInc(IBP)President,CEOand
owningafewstocksandheisrightifhesWarrenbutwhenyouarent,youhavetodoitthewaythatscomfortablefor ChairmanJeffreyW.EdwardsSold$31.5millionofShares
byinsider
youandIliketosleepnights
AdvancedDrainageSystemsInc(WMS)Chairman,
President&CEOJosephAChlapatyBought$202,800of
Sharesbyinsider
DontbeinaHurrytoSell,LetYourWinnersRun. BakerBros.AdvisorsLpBuysIncyteCorp,AveXisInc,La
JollaPharmaceuticalCo,SellsAbbVieInc,DermaSciences
Inc,ArrayBioPharmaIncbyinsider
HGVoraCapitalManagement,LLCBuysCabela'sInc,Ally
Don'tbeintoomuchofahurrytosell.Ifthestockreachesapricethatyouthinkisafairone,thenyoucansellbut FinancialInc,TravelportWorldwide,SellsTegnaInc,Quality
oftenbecauseastockgoesupsay50%,peoplesaysellitandbuttonupyourprofit.Beforesellingtrytoreevaluatethe CarePropertiesInc,TroncIncbyinsider
companyagainandseewherethestocksellsinrelationtoitsbookvalue.Beawareofthelevelofthestockmarket.Are
yieldslowandPEratioshigh.Ifthestockmarkethistoricallyhigh.Arepeopleveryoptimisticetc?"Source
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TakeLowenstein.Thisyearitsoldat$16ashare,paida90centdividend...Ithadabookvalueof$43.OrNational MoreWisdomFromMohnishPabraiJun07,2017
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breakcouldendupsellingat$35insteadof$14?...Historically,manycompaniesthathavehadterribletimeshavecome
back,ormanyofthemdo.Adeclinedoesn'tmeanit'stheend

...RepublicSteelforexample,hasabookvalueof$65pershare.Idontthinkyoucouldreplaceitat$130pershare. TopRankedArticles
NooneisgoingintothesteelbusinessintheU.S.todayexcepttheJapanesewithascrapplant.Ortakecement.Anew
companycantgointobusinessunlesssomeonecomesupwitharevolutionarynewprocess...thesecompaniesand PicktheWinnersFirstWorryAboutPriceSecondbyGeoff
industriesgetintodisreputeandnobodywantsthem,partlybecausetheydontmakemuchmoney...ifyoubuy Gannon
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ValuebySmeadCapitalManagement
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TheFirstDecadeasanInvestorIstheHardest.

OID:AsImentionedtoyouinapriorconversation,Templeton'sworsttenyearsinvestmentwisewerehisfirstten YouMayAlsoLike
years.Andyoutoldmethatthesamewastrueforyou.
WithOilPricesCratering,ValueGurusBettheMoston
WalterSchloss:Yes,that'sright.Ithinkthefirsttenyearsyougetkindofacquaintedwithwhatyou'redoing.Interview TheseEnergyStocks
withtheOutstandingInvestorDigest
TechStocksReportLossesfortheWeek

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6/17/2017 5LessonsFromWalterSchlossGuruFocus.com
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Abouttheauthor:

RupertHargreaves
Rupertisacommittedvalueinvestorandregularlywritesandinvestsfollowingtheprinciplesset
outbyBenjaminGraham.Priortohisinvestingandwritingcareer,Rupertwasasaproprietary
currencytrader.RupertholdsqualificationsfromtheCharteredInstituteforSecurities&
InvestmentandtheCFASocietyoftheUK.HecoverseverythingvalueinvestingforValueWalk
andothersitesonafreelancebasis.

VisitRupertHargreaves'sWebsite

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