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...
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks. The intelligent investor needs to stay within areas they can analyze."
Stay within your analytical capabilities.
Read Full Analysis →"The investor's chief problem — and even his worst enemy — is likely to be himself. Before deciding on an investment, you must first know what kind of investor you are."
Self-knowledge is essential for investment success.
Read Full Analysis →"The defensive investor should confine his holdings to the shares of important companies with long records of profitable operations and in strong financial condition."
Stick to well-established, financially strong companies.
Read Full Analysis →Benjamin Graham has 3 key principles on circle of competence. The most important one is "Individual Understanding Required" — To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks.
Benjamin Graham applies circle of competence through several key principles including "Individual Understanding Required" and "Know Thyself as Investor". These principles guide practical investment decisions and have been tested across decades of market cycles.
Benjamin Graham's approach to circle of competence 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.
