There are also things like the company's management and how they run the company. It's about looking for "wonderful companies" at a good price.
I'm not saying which investment strategy is better or worse, just that I believe there is a lot more to Buffet's idea of value investment than you imply.
GP is using “value” in the traditional Benjamin Graham sense of companies that are quantitatively undervalued based on current financial statements. This is the definition used on Wall Street for “value” ETFs or mutual funds.
You’re referring to Warren Buffett’s expanded definition of “value” as any company priced below intrinsic value, which can include qualitative judgment of future growth.
You both make the point that Buffett’s approach deviates from the traditional Wall Street definition of “value”.
And the least important factor for long term value is strength of management. GE was renowned as the greatest managed company in the world before Immelt. You want a business any idiot can run, because eventually one will.
Buffett will tell anyone who will listen that value investing is purchasing investments at discount offering a good margin of safety to a reasonable estimate of intrinsic value. Low price to book value or low price to earnings don’t remotely comprise the universe of good value investments.