I talked to a friend some time back and he asked an interesting question - can Value Investing be automated? What is the Value Investing algorithm? I thought long and hard about this. It should be possible. In fact, everything can be automated. It is just a matter of inputs, processes and output. Some processes have a lot of complexity but in theory, it is always possible. As complex as life can be, our DNA is an algorithm, determining how we eat, love, sleep, reproduce, fall sick and die. So, the answer is yes, value investing can be automated. The question is how. How can we put Warren and Charlie's wisdom into a box?
World's greatest living investors: Warren Buffett, 91 and Charlie Munger, 97
Before we answer that though, let's think about why it hasn't been done yet. Well, maybe it is too hard. There...