Benjamin Graham, the godfather of value investing believed that to value a company all you needed to do is study the figures. Graham made no effort to value intrinsic, company-specific value-adding qualities.
[munger]
All he was looking for was value; no matter where it came from.
“...Ben would like to take companies that appeared close in the alphabet and compare them statiscally. I remember specifically Coca-Cola and Colgate Colgate-Palmolive Company (NYSE:CL) where he showed statistically how much cheaper Colgate was than Coke and he compared Dow Chemical to Distiller Seagram (now Seagrams) in which Seagrams was much cheaper…”
Walter Schloss 1993. The full text can be found here.
"He was using the statistics. He wasn’t using industry analysis. He was using the value of the company....
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