Buffett's philosophy, quantified

“Value” is one of the most overused words in investing. At its core, though, value investing is a straightforward idea, identifying companies trading below their intrinsic worth. Investors typically rely on familiar metrics like price-to-earnings (P/E), price-to-book (P/B) or the PEG ratio to spot such opportunities. The underlying bet is that markets are inefficient in the short term but rational over time. Prices may deviate from fundamentals, but sooner or later, they converge. That process, commonly known as mean reversion, is what unlocks returns for patient value investors. From Graham to Buffett, and beyond Value investing built its roots with Benjamin Graham, who preached the virtues of a “margin of safety”, buying a dollar for 50 cents. Warren Buffett evolved the philosophy further by looking beyond cheapness to strong businesses. He sought companies with durable moats, capable management and predictable earnings. Over the decades, the philosophy evolved from buying “cheap” stocks to identifying sustainable businesses trading below fair value. Indian invest