by Ye – Gurufocus.com
There are many who count themselves value investors. In fact, they are really what Seth Klarman calls “value pretenders”. It is easy to be a value pretender. I was one. Following Pabrai blindly into buying Delta Financial cost me a lot of play money. Importantly, I learned the differences between a value investor and a value pretender.
A value pretender may not realize he is a pretender. He understands the difference between price and value. He understands that Mr. Market is here to serve him. He knows he should demand a margin of safety. He admires the value investing gurus so to the point of thinking they are always right. But he does not grasp the principals of value investing.
To become a true value investor, we need to first understand the principals of value investing. Below are six principals I think are crucial for an investor to truly understand value investing
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