Walter Schloss: Value Investing’s Hidden Legend

1. Walter Schloss earned 15%+ returns for over 40 years with a simple value strategy.

2. He learned from Benjamin Graham and stuck to classic value investing rules.

3. Schloss focused on cheap, low-risk stocks based on hard numbers.

4. He ignored market noise and stayed disciplined, even when others disagreed.

5. Warren Buffett praised him as proof that basic value investing works.

Forgotten but Formidable: Who Was Walter Schloss?

You probably haven’t heard much about Walter Schloss. He wasn’t a regular guest on TV shows, didn’t write flashy books, and didn’t try to build a personal brand. But behind the scenes, he quietly put together one of the best investing records of all time. For over 40 years, he earned more than 15% a year—beating the market without the tools most investors rely on today. No computers, no team, no big office. Just a clear system, a calm mind, and a deep belief in value investing. He’s proof that you don’t need to be loud to be great.

Early Days and Education Under Benjamin Graham

Walter got into investing young. He was born in 1916 and grew up in New York. During the Great Depression, he worked on Wall Street and took night classes at Columbia University. That’s where he met Benjamin Graham—the man who basically invented value investing. Graham taught him the idea of buying stocks that trade for less than they’re worth, with a “margin of safety” to protect you when things go wrong. Schloss later worked for Graham’s firm, where he crossed paths with a young Warren Buffett. But unlike Buffett, Schloss never changed his style. He kept it simple and stuck to Graham’s rulebook for life.

The Schloss Approach: Pure Graham, No Frills

Walter didn’t try to guess the future. He wasn’t interested in big predictions or market forecasts. Instead, he focused on cold, hard facts. He looked for companies that were cheap—often trading for less than the value of their assets. He wanted them to have low debt and a record of making money. If the numbers looked good and the stock was unloved by others, he was interested. He avoided anything too complicated or trendy. His approach was quiet, steady, and very effective. He didn’t need to impress anyone—he just needed the numbers to make sense.

Independence and Discipline: His Key Strengths

One thing that set Schloss apart was his mindset. He didn’t care what other investors were doing. He didn’t follow the crowd. In fact, he often did the opposite—buying stocks that others had forgotten or hated. He didn’t meet with CEOs or listen to earnings calls. He trusted the numbers, not the story. And most of all, he kept his emotions in check. He never tried to time the market. He just bought cheap stocks, held them patiently, and let time do the work. In a world full of hype and noise, that kind of self-control is rare.

Performance That Spoke Louder Than Words

Walter Schloss didn’t chase trends. He didn’t take big risks. He didn’t borrow money to boost returns. But year after year, his fund beat the market. He followed a repeatable process and avoided mistakes. That’s how he protected capital and grew wealth slowly and safely. He didn’t care about being famous—he just wanted to get the job done. While others were busy making promises, Schloss quietly built one of the most trusted records in investing. And he did it all by staying true to his simple strategy.

Warren Buffett's Admiration and Endorsement

Warren Buffett doesn’t hand out compliments easily. But he had deep respect for Schloss. In his 1984 essay “The Superinvestors of Graham-and-Doddsville,” Buffett listed Schloss as proof that value investing works. He praised him for sticking to his method, no matter what was popular at the time. Buffett once said, “Walter Schloss is a man who doesn’t worry about being with or against the crowd. He just focuses on what he knows best: buying undervalued stocks.” Schloss showed that you don’t have to be flashy or bold—you just have to be consistent and smart.

Lessons from Schloss: Why He Still Matters Today

Walter Schloss is a great example for everyday investors. He showed that you don’t need fancy tools or a big team to succeed. What really matters is having a clear plan, staying patient, and avoiding big mistakes. His story is a reminder that simple, steady investing can work—even in today’s fast-paced market. If this story helped you think differently about investing, feel free to send us an email—we’d love to hear from you. And if you know someone who would enjoy this, go ahead and pass it along.

Happy investing!
Josh

The information is provided for educational purposes only and does not constitute financial advice or recommendation and should not be considered as such. Do your own research.