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...
"The investor cannot prudently judge management merely by the results. He must look at management's character, their honesty, and their treatment of stockholders."
Evaluate management integrity alongside results.
Read Full Analysis →"Current assets should be at least twice current liabilities."
Require current assets to be at least double current liabilities as a minimum test of financial stability.
Read Full Analysis →"Earning power is the key element in the valuation of a common stock."
A company's demonstrated ability to generate consistent earnings is the primary driver of its stock valuation.
Read Full Analysis →Benjamin Graham has 3 key principles on business judgment. The most important one is "Management Character" — The investor cannot prudently judge management merely by the results.
Benjamin Graham applies business judgment through several key principles including "Management Character" and "Financial Soundness". These principles guide practical investment decisions and have been tested across decades of market cycles.
Benjamin Graham's approach to business judgment is distinguished by a focus on long-term thinking and fundamental analysis. With 3 specific principles in this area, Benjamin Graham provides a comprehensive framework that investors at any level can study and apply to improve their decision-making.
