Before we dive head down into the factors, you have probably heard of outstanding value investors such as Warren Buffett, Seth Klarman and probably Peter Lynch, but who is Walter Schloss?

Walter Schloss was a legendary value investor who was also under Benjamin Graham’s guidance, along with Warren Buffett.

Amongst the numerous capable investors highlighted in The Superinvestors of Graham-and-Doddsville by Warren Buffett, Schloss’s performance was nothing short of stunning. His partnership’s overall gain (gross and net of fees) has superseded the S&P 500 index by a large margin, consistently beating the index for many years.

How can academics claim that the markets are efficient and perfectly priced when an individual, who did not even go to college, is able to outperform the S&P 500 by a huge margin? In his article on Walter Schloss, Warren Buffett even mentioned that “Maybe it was a good thing for his investors that