Buffett transition from Graham's "cigar butt" buy-and-sell strategy to Munger's great-companies-at-fair-price moat strategy.
But the reason he did this was due to SCALE.
As a small investor with a tax-free account, I wonder if the Graham strategy makes more sense?
Buffett's HIGHEST returns came from this early days using pure value investing.
In other words, start by buying and selling really cheap stocks then transition to buy-and-hold with moat-protected firms once you have a large portfolio.
I.e., Focus mostly on cheap stocks for now instead of great stocks.
There are good arguments on both sides. For example, Graham had more low-hanging fruit during the Depression era. On the other hand, later investors like Joel Greenblatt still did make a lot of money using that strategy.
There seem to be 2 deficiencies: (1) Scale, which is irrelevant to small investors and (2) Risk of Contraction which would erode margin of safety and push you more towards growing, quality businesses instead of just cheap ones.
Edit: Phil Town says essentially that if the undervalued stock recovers and then grows single digits then sell, but hold if double digit growth.