Benjamin Graham
Benjamin Graham's framework turns an investing idea into a decision memo: what to check, what to avoid, and what would change your mind. Use the 71 principles below as a checklist—not as buy/sell signals—and verify any numbers or quotes with primary sources. If you're new, start with Value Investing to frame business quality, valuation discipline, and risk, then browse topics to find the rules that match your situation. Pair each principle with a concrete trigger so you can review whether you followed the process after the decision.
- Start with the principles as questions (not trade signals).
- Write down your thesis, risks, and “what would change my mind”.
- Cross-check with scenarios, filings, and your own data sources.
Educational only. This is not investment advice.
"In the short run"
About Benjamin Graham
Benjamin Graham (May 9, 1894 – September 21, 1976) was a British-born American economist, professor, and investor, widely known as the "father of value investing." His work laid the foundation for modern security analysis and investment philosophy. Graham taught at Columbia Business School for nearly three decades, where his students included Warren Buffett, who later called him the second most influential person in his life after his father. His investment firm, Graham-Newman Partnership, achieved an average annual return of approximately 20% from 1936 to 1956. His two seminal books, "Security Analysis" (1934) and "The Intelligent Investor" (1949), introduced fundamental concepts still used today, including intrinsic value, margin of safety, and the allegorical "Mr. Market." Graham advocated for a disciplined, emotionally detached approach to investing based on thorough analysis. Graham's emphasis on buying securities at a significant discount to their intrinsic value has influenced generations of value investors and remains the cornerstone of defensive investing strategies worldwide.
Core Investment Principles
Financial Strength Matters
The investor should impose some limit on the price he will pay for an issue in relation to its earnings. A strong balanc...
→Earnings Stability Criterion
The company should have a long record of paying dividends and no earnings deficit in the last five years. Consistent ear...
→Dividend Record Check
An uninterrupted record of paying dividends for at least 20 years is a positive quality factor. Dividends signal managem...
→Individual Understanding Required
To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder tha...
→Know Thyself as Investor
The investor's chief problem — and even his worst enemy — is likely to be himself. Before deciding on an investment, you...
→Browse Benjamin Graham's Principles by Topic
Famous Quotes
"the market is a voting machine but in the long run"
"it is a weighing machine."
"The investor's chief problem -- and even his worst enemy -- is likely to be himself."
"The margin of safety is always dependent on the price paid."
"Have the courage of your knowledge and experience. If you have formed a conclusion"
