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...
"Buy stocks of companies selling at less than their net current asset value — that is, below the value of current assets after deducting all prior obligations."
Buy below liquidation value for maximum safety.
Read Full Analysis →"There is a close logical connection between the concept of a safety margin and the principle of diversification. Even with a margin in the investor's favor, an individual security may work out badly."
Diversify to protect against individual stock risk.
Read Full Analysis →"Current price should not be more than 1.5 times the book value last reported. A moderately low ratio of price to book value is another criterion for the defensive investor."
Use price-to-book as a value screen for safety.
Read Full Analysis →Benjamin Graham has 3 key principles on buying principles. The most important one is "Net Current Asset Value" — Buy stocks of companies selling at less than their net current asset value — that is, below the value of current assets after deducting all prior ob...
Benjamin Graham applies buying principles through several key principles including "Net Current Asset Value" and "Adequate Diversification". These principles guide practical investment decisions and have been tested across decades of market cycles.
Benjamin Graham's approach to buying principles 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.
