Walter Schloss, the Low-Stress Investor
Walter Schloss is a man who avoided stress in his work and was named a Superinvestor by Warren Buffett. In his 67-year career on Wall Street, Schloss learned from and worked for the best, namely, Benjamin Graham (another expert featured on meetinvest). Over a 45-year span, he managed to garner his clients a 15.3% compound return, outperforming the S&P 500’s 10%. When he deemed the market to be overvalued in 2001, he shut down his fund.
Long-Term, Low-Stress Investing
Unlike the busy investors of Wall Street who travel constantly and meet the management of potential investments, Schloss preferred to evaluate companies by looking at their books and knowing the numbers. Temperament and patience were his investment qualities. In addition to the prudence of reviewing a company’s finances and establishing that the management is competent, not overpaid and holding a substantial amount of stock, Schloss also believed in diversification, sometimes holding as many as 100 different stocks as a way of mitigating risk; his average length of investment was four years. His mantra was always ‘buy cheap stocks’.
Schloss’ Background and Credentials
Schloss started on Wall Street in 1934 and took courses taught by Benjamin Graham, whose company he later joined before starting his own investment firm in 1955.
→ Read more about Walter Schloss’s investing strategy on meetinvest and see how a portfolio would have performed using his strategy.