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 should impose some limit on the price he will pay for an issue in relation to its earnings. A strong balance sheet is the first requirement for any investment."
Financial strength is the foundation of business quality assessment.
Read Full Analysis →"The company should have a long record of paying dividends and no earnings deficit in the last five years. Consistent earnings are more important than growing earnings."
Consistent earnings history indicates business quality.
Read Full Analysis →"An uninterrupted record of paying dividends for at least 20 years is a positive quality factor. Dividends signal management confidence in future earnings."
Long dividend history demonstrates consistent profitability.
Read Full Analysis →Benjamin Graham has 3 key principles on business quality. The most important one is "Financial Strength Matters" — The investor should impose some limit on the price he will pay for an issue in relation to its earnings.
Benjamin Graham applies business quality through several key principles including "Financial Strength Matters" and "Earnings Stability Criterion". These principles guide practical investment decisions and have been tested across decades of market cycles.
Benjamin Graham's approach to business quality 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.
