INVESTING
FINDING THE NEXT BUFFET Warren Buffett is broadly considered one of the 20th century's most successful investors. Much of Buffet’s fortune was amassed due to his unique talents in finding deep value public companies and his contrarian investment philosophy. If you had invested in Berkshire Hathaway in 1965 when Warren Buffett took the helm, your cost would have been about $14 a share. Today, 57 years later, the price of Berkshire Hathaway is $548,000 per share. You would have made 40,000 times your money or 4 million percent. A $1,000 investment in 1965 would be worth 40 million dollars today, not including dividends or distributions along the way. Warren Buffett is, without a doubt, the number one value investor of our time. He built the seventh-largest company in the world. In the last 15 years since the mortgage and the derivative meltdown of 2007/08, Warren Buffett's skill of picking the best value Investments became obsolete with the use of algorithms, derivatives, ETFs, technical traders, and day Traders who now dominate 90 to 95 % of the US market. Berkshire Hathaway would have had minimal growth if it had not been for Buffet's 16 billion dollar investment in Apple between 2014 to 2016. The value that had consistently outperformed growth now took a backseat as algorithms did the trading for humans and simply bought automatically when stocks hit new highs and sold when stocks hit new lows, even if it did not make sense. The proliferation of algorithmic derivatives made companies super over or underpriced.
BRUCE GALLOWAY Man vs. Machinee By Kristie Thompson
20
MAN vs. MACHINE One former Wall St. Florida transplant with over 40 years of experience focusing on value investing figured out the key to controlling the algorithms to ride them to Buffet-style outstanding returns. Instead of being at the mercy of the bots that sell and short at companies' low, Bruce Galloway at Galloway Capital specializes in finding deep value companies where the baby has been thrown out with the bathwater. He then actively engages management in finding the catalysts needed to shock the algorithms and automated trading systems to start buying and pushing these companies' stocks back up. He developed a strategy to outperform the bots at their own game by identifying what the
