Value investing at its core is really a simple methodology of finding cheap “undervalued” stocks at bargain prices.

Its founder, Benjamin Graham lived through the great depression where times were truly tough. That experience has also fed into the psychology and thinking of the framework in The Intelligent Investor – his most famous and well known book.

Many of his disciples are fond of talking about frugality and thrift despite amassing staggering wealth. Warren Buffett for example is famous for still staying in his original house and driving his own car.

That begs the question – is shunning material pleasures part and parcel of being a successful investors?

A dollar spent today is an opportunity cost

Part of the reason that drives value investors to be so thrifty is that money spent today represents money that could have been compounded over five, ten or fifteen years. It seems sightly absurd …