In his 2000 Letter to Shareholders Warren Buffett discusses how: “Market commentators and investment managers who glibly refer to “growth” and “value” styles as contrasting approaches to investment are displaying their ignorance, not their sophistication. Growth is simply a component – usually a plus, sometimes a minus – in the value equation.” Therefore, the modern value investor has to analyze growth as a key component of value and include growth in the calculation of intrinsic value.
