Benjamin Graham
The Father of Value Investing
Benjamin Graham
Value Investing
Key Stats
Net Worth
$10 Million (1976)
Origin
British-American
Lifespan
Born 1894 (132 years old)
Biography
Benjamin Graham is universally regarded as the father of value investing and security analysis. His teachings at Columbia Business School and his writings shaped the investment philosophy of Warren Buffett, among many others.
The Graham Approach
Graham developed the fundamental framework for value investing:
- Margin of Safety: Always buy with a discount to intrinsic value
- Mr. Market: View the market as an emotional partner
- Quantitative Analysis: Use financial statements to determine value
- Net-Net Investing: Buy companies trading below net current asset value
Columbia & Mentorship
Graham taught at Columbia Business School for nearly three decades, where his students included Warren Buffett. His courses on security analysis became legendary.
Trading Philosophy
"The intelligent investor is a realist who sells to optimists and buys from pessimists."
Famous Trades
GEICO
Graham's partnership purchased a large stake in GEICO for $712,000, eventually worth over $400 million.
Legendary Investment
+5000%
Legendary Quotes
"The intelligent investor is a realist who sells to optimists and buys from pessimists."
"In the short run, the market is a voting machine but in the long run, it is a weighing machine."
"The essence of investment management is the management of risks, not the management of returns."
Recommended Reading
Security Analysis
The foundational text on fundamental analysis
The Intelligent Investor
The definitive book on value investing for individuals