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The Secret to Great Value Investing

Warren Buffett, Charlie Munger and Ted Weschler all have this one thing in common.

This story originally appeared on Zacks

- Zacks
  • (1:00) - Long Term Value Investing: What Makes A Good Investor?
  • (8:30) - Start Investing At A Young Age: What Should You Buying For The Long Haul?
  • (18:15) - Tracey’s Top Stock Picks
  • (26:35) - Episode Roundup: VOO, VTI, VO, VB, VBR


Welcome to Episode #255 of the Value Investor Podcast.

Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.

What does it take to be a great value investor?

What do Warren Buffett, Charlie Munger and Ted Weschler all have in common?

They have all benefited from time. The earlier you start investing, the longer you have to compound that money.

You don’t have to be in the latest hot stock. Heck, you can just buy the stock indexes.

Saving in Retirement Accounts

Ted Weschler, one of Buffett’s two Berkshire Hathaway lieutenants, was in the news in 2021 because it was leaked that as of 2018, he had $264 million in his Roth IRA.

He talked with Allan Sloan of the Washington Post this summer about how he did it. The biggest factor was that he started saving into his 401k in his first job with WR Grace straight out of college in 1983.

By 2018, he had been invested for 35 years.

Yes, he’s a great investor so he was able to compound that money. He rolled over his original 401k in 1990 into an IRA and had more investment choices available.

But that $70,384 roll-over, would still have been $1.6 million by 2018 if it had simply been invested in the Vanguard S&P 500 ETF VOO.

Investing Isn’t Complicated

You don’t need to buy the “next” Amazon to be a successful investor.

Starting young gives you a huge leg up.

In addition to the S&P 500 index, you could buy the Vanguard Total Stock Market ETF VTI and own 4025 stocks.

Want to avoid the large caps? There’s the Vanguard Mid-Cap ETF VO and Small-Cap ETF VB.

If you want only small cap value stocks, which has historically been one of the best performing asset classes, there’s the Vanguard Small Cap Value ETF VBR.

It’s so easy to simply buy the indexes, that Tracey owns shares of VOO and VB in her own personal portfolio.

What else should you know about the secret to great value investing?

Tune into this week’s podcast to find out.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

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Vanguard Total Stock Market ETF (VTI): ETF Research Reports


Vanguard S&P 500 ETF (VOO): ETF Research Reports


Vanguard SmallCap Value ETF (VBR): ETF Research Reports


Vanguard SmallCap ETF (VB): ETF Research Reports


Vanguard MidCap ETF (VO): ETF Research Reports


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Zacks Investment Research