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Stock Strategist

Marty Whitman's 'Safe and Cheap' Approach

How to pick stocks that fit Whitman's strict criteria.

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One of our favorite value investors is Marty Whitman, manager of the  Third Avenue Value Fund (TAVFX). The fund has racked up a heady 16.9% annualized average return since its 1990 inception by adhering to Whitman's self-described "safe and cheap" approach, leaving efficient market aficionados scratching their heads.

Whitman has also been deemed "one of the keener minds in the investment world" by Morningstar fund analyst Kerry O'Boyle, so when Whitman speaks, we listen. Whitman has authored The Aggressive Conservative Investor and Value Investing: A Balanced Approach. Both of these books shed light on his approach. Additionally, Whitman publishes thoughtful quarterly letters that outline recent transactions and provide commentary on timely topics.

Ryan Dobratz does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.