Though he studied under Ben Graham and has adopted many of Graham's investing principles, the world's greatest investor is not your typical value investor. He speaks of margins of safety and of buying companies at discounts, but over the years Buffett has shown a willingness to buy businesses for what appears to be full price, at least on a P/E basis. What allows Buffett to do this and still generate excellent returns is his ability to understand economic "moats" better than anyone else.
For example, making headlines this week was Buffett's purchase of Burlington Northern Santa Fe (BNI), a railway freight business. While most value investors are using this recession as an opportunity to gobble up companies trading