The Rational Walk What is The Rational Walk? Those of you familiar with the Random Walk Theory in Finance may have figured it out already. The Random Walk Theory holds that security prices cannot be predicted and that the market is generally efficient, meaning that all relevant information is reflected in market prices. While this may in fact be true for many securities at any given time, it appears manifestly untrue for certain securities at certain times.

Benjamin Graham is widely known as the father of value investing and Warren Buffett is the most prominent investor who has largely based his style on the principles taught by Graham. I would characterize value investing as fundamentally rational investing. The goal is to identify securities trading at prices far below the intrinsic value of the business and to only make purchases when a substantial margin of safety exists.

This website was created to provide a platform to write about value investing founded on the principles of Graham and Buffett. There will be a significant amount of content on Berkshire Hathaway and other investments including companies in which the author may have holdings. This site does not exist to promote the author’s holdings and in all cases, positions will be disclosed in individual posts. The exception is that I will not make individual disclosures for Berkshire since this is a permanent holding of the author and should be assumed in all posts covering Berkshire.