Buffett, of course, is the legendary investor who has made himself and others very wealthy by seeking out true values in the stock market. Over the years, he has become the largest shareholder in companies like Coca-Cola, American Express, Gillette, Disney, and Wells Fargo. Kostas, on the other hand, writes for the Daily Racing Form, the thoroughbred version of the Wall Street Journal. I think his discussion about searching for value would be warmly embraced by Buffett. That sounds just like a Wall Street analyst speaking.
Value investors seem to always be going in the opposite direction of the rest of the crowd.
Value, he says, is based on the probability of your horse winning in relationship to the corresponding odds. Buffett has applied the very same logic to the stock market for decades. It has always amazed me that the stock market and horse racing have so much in common. They both require a certain understanding of the rules and success usually comes to those who follow a specific discipline. I guess you could say that Warren Buffett is the ultimate handicapper.