Phil Town, Rule #1 Strategy

I've been listening to a few podcasts by this guy and his strategy seems to make a lot of sense to me. He bases it around Buffet, and Munger and talks about them a LOT.

Because of his huge margin of safety you wont find anything under current market conditions, but sounds like a great strategy under more "normal" conditions or after a large market correction, or if a company share price plummets due to a short term event but long term prospects are still great.

Has anyone applied this technique to the much smaller NZ market and got good results? How hard is it to find great but severely undervalued stocks with so few to choose from, in comparison to the US?