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The stock was trading at a share, but after studying the balance sheet, Graham realized that the company had bond holdings worth for every share.
During these initial years, Warren's investments were predominately limited to a Texaco station and some real estate, but neither were successful.
His subsequent book, , which Warren celebrates as "the greatest book on investing ever written", introduced the world to Mr. Through his simple yet profound investment principles, Ben Graham became an idyllic figure to the twenty-one-year-old Warren Buffett. The experience would be something that stayed with Buffett for the rest of his life.
Reading an old edition of Who's Who, Warren discovered his mentor was the Chairman of a small, unknown insurance company named GEICO. He eventually acquired the entire GEICO company through his corporation, Berkshire Hathaway.
It was around this time that Graham came up with the principle of "intrinsic" business value - a measure of a business's true worth that was completely and totally independent of the stock price. Not to be stopped, Buffett relentlessly pounded on the door until a janitor came to open it for him. Warren was escorted up to meet him and immediately began asking him questions about the company and its business practices; a conversation that stretched on for four hours.
Using intrinsic value, investors could decide what a company was worth and make investment decisions accordingly. The man was none other than Lorimer Davidson, the Financial Vice President.