Wednesday, February 23, 2011

Lessons from the Legends: A Benjamin Graham Quote

In any value investors mind, it is a crime that I have not even mentioned Benjamin Graham yet. Why? Because he is the father of value investing! He is the guy who taught Warren Buffett in university and gave him the initial investing framework. He is a true legend of the practise.

Graham: “A stock doesn’t become a sound investment merely because it can be bought at close to its asset value. The investor should demand, in addition, a satisfactory ratio of earnings to price, a sufficiently strong financial position, and the prospect that its earnings will at least be maintained over the years”

You'll notice that this quote pretty much summarizes my last post. Don't worry, there will be a better profile on Ben Graham to come.

I'd also like to point out that EVERY investor I mention in this blog has a LONG record of beating the market. These guys are the real deal. Not the hot shot equity or forex trader who has 1 or 2 good years, but a poor long-term record.

19 comments:

  1. interesting, i do economics at high school, i like your work. nice wallpaper too

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  2. Hmm interesting Benjamin Graham quote, though I certainly like reading the famous Warren Buffer quotes! Thumbs up!

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  3. this is my favorite one from this Lessons from the legends series

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  4. You really can learn from their wisdom

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  5. I really need to get into investing now.

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  6. Benjamin Graham sounds extremely knowledgeable. I've never heard of him before. Are there any tips you have for a newbie to all this to get a decent introduction?

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  7. That quote is truly the basics of stock analysis.

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  8. It really is all about the long term. All these gimicky sites that alert you to the next big thing seem to miss the mark on... at least according to this quote.

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  9. I have always been weary of investing because inflation and depreciation is always lowering changing the market out of investors favor. Nice quote man.

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  10. In my opinion, stock is about what will happen...not what is happening now or what has happened.

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  11. interesting stuff, I have a small mutual fund that I plug some money into every so often. Once I graduate, I'll hopefully be making enough money to invest seriously

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  12. smart man, never heard of him though, did he write any good books on economics?

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  13. Investing is very technical stuff. I have peered into the realm of economics, investing, stocks and global economic balance and trade but that is obviously a lot of information to retain. Economics, in general, is something that I would like to learn a lot about.

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  14. yea you really need to think of finance as a long term thing

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  15. I like the quote can be applied not just to financial investment. Go for the long term and not the short term, good post!

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  16. I don't know anywhere near of what I should in the realm of economics, thankfully folks like you can get me up to speed!

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  17. Very interesting, can't wait to read more!

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