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...
"Imagine having a partner named Mr. Market who offers to buy or sell shares at a different price every day. Sometimes his price is reasonable, but often it is absurdly high or low. You are free to ignore him."
The market is your servant, not your master.
Read Full Analysis →"The intrinsic value of a stock is the value justified by the facts — the assets, earnings, dividends, and definite prospects. This value is independent of the market price."
Intrinsic value exists independently of market price.
Read Full Analysis →"Confronted with the need to estimate future growth, I am ready to adopt as a rule of thumb a margin of safety of about 50%. The function of the margin of safety is to render unnecessary an accurate estimate of the future."
Margin of safety eliminates the need for precise predictions.
Read Full Analysis →Benjamin Graham has 3 key principles on mental models. The most important one is "The Mr. Market Parable" — Imagine having a partner named Mr.
Benjamin Graham applies mental models through several key principles including "The Mr. Market Parable" and "Intrinsic Value Model". These principles guide practical investment decisions and have been tested across decades of market cycles.
Benjamin Graham's approach to mental models 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.
