Walter Schloss was a legendary value investor who worked for Benjamin Graham and later ran his own partnership for nearly 50 years. His simple, disciplined approach to buying cheap stocks generated remarkable returns with minimal risk.

Graham-Newman

Schloss worked at Graham-Newman Corporation alongside Warren Buffett in the early 1950s. He learned directly from Benjamin Graham, the father of value investing, and applied those principles throughout his career.

WJS Partnership

In 1955, Schloss started his own investment partnership with just $100,000. Over the next 45 years, he generated compound annual returns of approximately 16%, compared to 10% for the S&P 500. He never had a down year of more than 10%.

Simple Approach

Schloss's approach was remarkably simple: buy stocks trading below book value, diversify broadly, and be patient. He didn't use computers, didn't meet with management, and worked from a small office with just his son.

Warren Buffett's Endorsement

In his famous 1984 essay "The Superinvestors of Graham-and-Doddsville," Buffett highlighted Schloss as proof that value investing works. Schloss was one of the "superinvestors" who consistently beat the market using Graham's principles.