Walter Schloss was an amazing investor. He averaged a 16% total return after fees over five decades versus 10% for the S&P500 over the same time period. If you invested $100,000 today, a 16% average annual return would grow to $167 Million over those five decades, while a 10% average annual return would grow to just $11.7 Million during the same time frame. Therein lies the power of compounding and performing just a bit higher than the market average over a long period of time.
Walter ran his business (eventually with his son, Edwin Schloss) with no analysts, no secretary and no technology - just a paper copy of Value Line and a telephone. His annual costs were less than $10,000. A former employee of Benjamin Graham, this was a man who truly loved buying cheap stocks. A link to The Walter Schloss Archive, including his writings and lectures can be found here. The simplicity of his strategy is likely attributable to the market-beating returns that he produced over his lifetime. He left many gifts for investors, including the following list of 16 factors needed to make money in the stock market.
Factors Needed to Make Money in the Stock Market, by Walter J. Schloss
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