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Benjamin Graham

Summary

Graham is credited with being the ‘Father of Security Analysis and Value Investing.’.

At 25-years old, Graham was earning more than $500,000 a year.

It is said that Graham was a kind and patient teacher at Columbia University in 1920s. Earlier in his life, He declined an offer to teach English, mathematics, and philosophy.

Warren Buffett’s first son is named Howard Graham Buffet as homage to his teacher and mentor. Warren Buffett describes The Intelligent Investor (1949) as "the best book about investing ever written."

“But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.” — Benjamin Graham.

"You can have an extraordinary difference in the price level mainly because not only speculators but because investors themselves are looking at the situation through rose colored glasses rather than dark blue glasses." 

Once, at a lecture, he was asked if Wall Street professionals were better at forecasting what would happen to market, and if not, then why, and here's what he said:

"Well, we’ve been following that same question for a generation or more, and I must say frankly that our studies indicate that you have your choice between tossing coins and taking the consensus of expert opinion and the result is just about the same in each case.

Everybody in Wall St. is so smart that their brilliance offsets each other. And that whatever they know is already reflected in the level of stock prices for the much, and consequently what happens in the future represents what they don’t know."

If you are shopping for common stocks, choose them the way you would buy groceries, not the way you would buy perfume. – When you buy groceries, you buy the stuff you need. Food will always be a necessity. When you’re shopping for perfume rather, you’re shopping for the latest trends. They go in and out of fashion after a few years, if not months. Stocks in companies that are here to stay, rather than the latest hot trend, should be your primary strategy.

“Individuals who cannot master their emotions are ill-suited to profit from the investment process.”Value investing is long-term investing. This means there may be times when the values of your holdings go down. But you’re not in it for the short-term swings; you only care about the long-term outlook. The stock price of a fundamentally sound company will appreciate significantly in the long term. So in in order to wait out those times of short-term fluctuation, you need to practice strength and self-discipline, e.g., don’t panic and just hold on to your portfolio. Keep calm and enjoy long-term profits.

Source: Public information available on Internet