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.
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19 comments:

  1. Jimmy GrafFebruary 23, 2011 at 12:18 AM

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

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  2. D22 ZoneFebruary 23, 2011 at 12:58 AM

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

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  3. Igneel21February 23, 2011 at 1:21 AM

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

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  4. Patti D.February 23, 2011 at 3:52 AM

    You really can learn from their wisdom

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  5. Chris C.February 23, 2011 at 4:14 AM

    I really need to get into investing now.

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  6. Anonymous.February 23, 2011 at 8:36 AM

    Hm, interesting...

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  7. The Almighty LewisFebruary 23, 2011 at 9:15 AM

    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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  8. Archon6February 23, 2011 at 10:14 AM

    That quote is truly the basics of stock analysis.

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  9. metaphysicalfarmsFebruary 23, 2011 at 10:27 AM

    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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  10. HillDogFebruary 23, 2011 at 11:02 AM

    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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  11. TWIG128February 23, 2011 at 12:27 PM

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

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  12. The WiredFebruary 23, 2011 at 1:18 PM

    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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  13. mtnFebruary 23, 2011 at 1:21 PM

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

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  14. AnonymousFebruary 23, 2011 at 1:46 PM

    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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  15. AndrewFebruary 23, 2011 at 2:45 PM

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

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  16. AFebruary 23, 2011 at 3:05 PM

    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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  17. synoptixsFebruary 23, 2011 at 6:20 PM

    good quote for stocks

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  18. Aaron M. GipsonFebruary 23, 2011 at 7:19 PM

    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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  19. SamFebruary 23, 2011 at 9:25 PM

    Very interesting, can't wait to read more!

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