Benjamin Graham
Historical Figure1894-1976
From Security Analysis by Benjamin Graham
The margin of safety is the central concept of investment.
Known for: Father of value investing. Co-authored Security Analysis, wrote The Intelligent Investor. Taught Warren Buffett at Columbia Business School.
About Benjamin Graham
Role: Father of Value Investing and Security Analysis
Core Belief: An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.
Worldview: Markets are driven by psychology in the short term but tend toward rational valuation over time. The intelligent investor uses market fluctuations rather than being guided by them.
Public Consultations with Benjamin Graham
1:1 ConsultationMar 24, 20264 messages
I run a hedge fund...
Q: I run a hedge fund and we have been bleeding this month. I'm thinking of moving all assets into gold
Benjamin Graham: I do not give advice on hunches. I give advice on valuation. Gold has certain properties as a store of value, but it produces no earnings. How would you measure the margin of safety? I'm not against owning gold per se. I am against making material portfolio changes based on something other than demo…
RoundtableMar 24, 20263 messages
Is it more important to find a cheap stock or a go...
Participants:Benjamin Graham
David L. Dodd
You: Is it more important to find a cheap stock or a good business?
Benjamin Graham: A cheap stock is not necessarily a good business. An investment operation, as I define it, promises safety of principal and an adequate return. Thorough analysis is required. Examine the financial sta…
David L. Dodd: I would emphasize that before assessing whether a business is good or its stock is cheap, one must be able to trust the financial statements. This trust is not automatic. Begin with the balance sheet.…
1:1 ConsultationMar 24, 202634 messages
I've been putting money into...
Q: I've been putting money into growth stocks for years. Would you say I'm an investor or a speculator?
Benjamin Graham: That depends on whether you have analyzed those stocks thoroughly and whether you have a clear idea of what they are worth. An investment operation, you see, is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are specu…
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