That quote is often taken as quantitative versus qualitative, and I think that balance Buffett describes is a pretty good one to have.

If you can’t quantify a return of monetary value to shareholders, you end up relying on things like comparative analysis, exit multiples, and where the market might price the business in the future, not the actual fundamentals themselves.

Graham would have called that the difference between investing and speculation.

Qualitative factors definitely have their place, but only after the quantitative side meets the return you’re looking for. That’s how I see it anyways.

I want to be able to point to a return of monetary value, whether through earnings or assets, that I can actually quantify.