Question: What do you think of the use of book values in making investment decisions?
Buffett: Book value is virtually not a consideration in investment decision-making at Berkshire. Their pursuit of high return businesses usually leads to companies with minimal book values. He added that the book value approach could work well with small sums of money, like Graham had managed, and that the approach had worked well for Graham-type practitioners like Buffett’’s friend Walter Schloss. The three most important concepts conveyed by Graham in The Intelligent Investor were the investor’s attitude toward the market, the margin of safety, and the practice of looking at companies as businesses, not stocks.
Source: BRK Annual Meeting 1995