Investement

Money Quote: “Whether socks or stocks, I like buying quality merchandise when it is marked down.”

Fundamentals: Buffett’s mentor, Ben Graham, taught his disciples that you weren’t buying stocks, you were buying businesses. And sometimes “Mr. Market” was willing to sell those businesses for less than they were really worth. That was the signal to buy. Buffett has adhered to this value-investing philosophy since the 1950s, and it’s the basis of his $65 billion fortune. Some big hits: American Express AXP +0.95%, Disney, Washington Post, Capital Cities/ABC, Coca-Cola and Geico.

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