📖Benjamin Graham
Net-Net Selection Criterion
Apply strict balance sheet tests before buying.
We suggested as a minimum requirement that the total equity be at least half the total capitalization, and that total current assets should be at least equal to total current liabilities.
🏠 Everyday Analogy
📖 Core Interpretation
Benjamin Graham advocates a repeatable process: define criteria, execute consistently, and review decisions against evidence. Process quality drives outcome consistency.
💎 Key Insight：Financial conservatism protects against permanent capital loss.
AI Deep Analysis
Get personalized insights and practical guidance through AI conversation
❓ Why It Matters
Without process, there is no reliable feedback loop. Structured execution and review improve decision quality over time.
🎯 How to Practice
Run a decision loop of research, thesis, execution, and post-mortem; document assumptions and update playbooks with evidence, not hindsight bias.
⚠️ Common Pitfalls
Having opinions without execution criteria
Reviewing outcomes but not decisions
Abandoning rules during volatility spikes
📚 Case Studies
1
Net-Net Bargains in Depression (1932)
During the Great Depression, Graham bought stocks trading below net current asset value, including undervalued industrials and utilities.
✨ Outcome：Many positions doubled or more as conditions normalized, validating deep value, balance-sheet-based quantitative methods.
2
Dot-com Bubble Valuation Discipline (1999)
Graham-style analysis rejects profitless tech stocks despite market euphoria, focusing on established firms with strong earnings and low P/E ratios.
✨ Outcome：Portfolio avoids 2000–2002 crash losses and later outperforms broad tech-heavy indices over the decade.
See how masters handle real scenarios?
30 real investment dilemmas answered by legendary investors
Explore Scenarios →