Because Buffett and Munger are Graham value investors, Berkshire uses an investing approach designed to outperform in “up” markets and overperform in “down” markets. The goal of a value investor is superior absolute performance, not relative performance. Buffett put it simply: “We will underperform in strong years, we will match in medium years, and we will do better in down years. We will outperform over a cycle, but there’s no guarantee on that.”
