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Value Investing and Longevity – The Distinct Link

February 27, 2012 | About:
On Feb. 19, 2012, another legendary value investor, Walter J. Schloss of Walter & Edwin Associates LP, died at the age of 95. Apart from his remarkable and unbeatable performance over a half century (16% against 10% of S&P 500 return), he also led a long life. That reminds me of one article that I read in 2011.

The original article is being written by Teh Hooi Ling, which was first published in The Business Times. I have summarized the article for you with some necessary updates.

Some well-known value investors live much longer than the average person. Recently, I was talking about this with one of my friends. He told me that it's probably a mere coincidence. I went further with this to figure out whether there are any specific reasons behind this phenomenon or if is it just a coincidence.

Teh Hooi Ling has covered some value investors with their almost similar investing techniques, importantly with their age. I have summarized it here for you:

  1. Benjamin Graham, teaches value investing at the Columbia Business School, lived until 82.
  2. David Dodd, also a professor at Columbia Business School and co-author of "Security Analysis," lived until 93.
  3. Sir John Templeton, investor and mutual fund pioneer died, at 95.
  4. Philip Fisher, author of the still-popular "Common Stocks and Uncommon Profits," died at age 96.
  5. Philip Carret, the author of "A Money Mind at Ninety," died at the age of 101.
  6. Roy Neuberger, founder of Neuberger Berman, died at an age of 107.
  7. Warren Buffett, chairman and CEO of Berkshire Hathaway, age 80 and still going strong.
  8. Charlie Munger, vice chairman of Berkshire Hathaway, age 87 and still breathing.
  9. Martin Whitman, founder and portfolio manager of Third Avenue Value Fund, age 87 and still going.
  10. Irving Kahn, Chairman of Kahn Brothers Group Inc., age 105 and still maintains regular five-day office hours to search for more undervalued stocks.
However, Teh Hooi Ling has missed some of the direct disciples of Benjamin Graham. I have added a section on them.

  1. Walter J. Schloss, Walter & Edwin Schloss Associates LP, died at the age of 95.
  2. William J. Ruane, founder of Ruane, Cunniff, and Goldfarb, died at the age of 80.
  3. Charles H. Brandes, founder of Brandes Investment Partners, age 69, currently has over $52.9 billion under management and is based in San Diego, Calif.
The article postulated why some of them lived to such a ripe old age. Among the reasons given were:

  1. Job satisfaction
  2. Active mentally
  3. Eustress, the flipside of distress
  4. Intelligence, good upbringing and better health care
When asked, Irving Kahn has revealed his personal recipe for living to the age of 100 in an article, “The Secrets of the Supercentenarians” by Samiha Shafy.

  1. Have a nutritious diet, with a lot of vegetables and salads.
  2. Get plenty of fresh air.
  3. Don’t drink, don’t smoke (he drinks at most one glass of wine every three months).
  4. Always stay in motion, be open, get to know people from all over the world.
  5. Have a lot of interests and learn things that you can’t do yet – that keeps you young!
So, join the prestigious value investing club and LIVE LONGER.

The articles can be found at: http://www.asiaone.com/Business/My+Money/Opinion/Story/A1Story20091123-181641.html and http://www.spiegel.de/international/zeitgeist/0,1518,719208,00.html

Mohammad Siddiquee is a Ph.D. Finance Candidate at the University of New Brunswick, Fredericton, Canada, and runs a value investing research website at www.patienceinvesting.com.

About the author:

Patience Investing, Inc.
PhD' Finance candidate at the University of New Brunswick, Fredericton

Visit Patience Investing, Inc.'s Website


Rating: 2.5/5 (11 votes)

Comments

Hester1
Hester1 - 2 years ago


Survivorship bias. The great investors who died in the 50's didn't live long enough to compile great records/reputations.

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