As an investor, I believe that one of the easiest things you can do to improve your performance is to learn from proven performers. That’s why I pay attention to Warren Buffett.

Buffett is known for his outstanding long-term track record. His company Berkshire Hathaway (NYSE: BRK.A) (NYSE:BRK.B) has seen its book value per share raise dramatically over the decades that the great man has been at the helm.

How to think about value

Like many investors, Buffett started by buying shares that he thought looked very economical compared to the company’s value.

However, in some cases, these were companies that had previously had a distinguished past but were now coming to an end due to factors such as changing customer tastes.

In fact, Berkshire is just such a company. It was a textile manufacturer that used to do very well. But before Buffett bought it, the economics of U.S. textile production were less attractive than before.

So Buffett changed his focus. He started looking for stocks that seemed to offer good value (even if they obviously weren’t “cheap“) based on the company’s long-term prospects.

You’re looking for great phrases

As an example, consider Berkshire’s largest holding: Apple. When Buffett started investing in Apple, it was already a huge success, and the stock was obviously not economical.

But he still believed it was of value to him. He believed that the company’s share price did not properly reflect its good prospects. Apple’s shares have obviously increased since the purchase. Once again, Buffett was right.

It’s going great

But he’s the first to admit that he’s not always right. He made mistakes.

This helps explain why Berkshire does not invest all of its funds in one investment idea, but rather diversifies. But instead of investing in a bunch of good companies, he’s going to buy a few great companies.

A Buffett-style share that I own

An example of what I consider a bargain stock based on his approach is ITV (LSE: ITV) which I have in my portfolio.

The company operates in a market that will continue to grow, namely those seeking entertainment and information. However, this market has changed dramatically in recent years as eyes have moved away from customary analog channels to a host of digital rivals.

This was – and remains – a risk to both ITV’s turnover and profits. However, over the past few years, the company has been working challenging to grow its digital revenues. In the last quarter, they increased by 11% year-on-year.

With both broadcasting and production activities, ITV has unique assets, including the rights to popular program formats. In the first quarter, revenues in production activities decreased due to lower demand for studio space and related services than a year earlier. This trend may continue in the following quarters.

However, like Buffett, I take a long-term view when it comes to investing. ITV, with a dividend yield of 6.5% at its current valuation, seems like a bargain stock to me.