Investors according to Benjamin Graham

First, who is Benjamin Graham? A quick google search will probably show you an excellent investor ahead of his time back in 1930s whom have recorded the investment psychology of investors which has not changed much in over 80 years. Even Warren Buffett would swear by Graham's evaluation techniques and logical deductions, all made available in the famous books, The Intelligent Investor and Security Analysis. 

Surely then this man, a forerunner of ACCA had to know a thing or two about investing. Hence, most articles posted on this blog tries to assimilate their investment wisdom. Thus, reading the two books mentioned is deemed priceless for investment analysis.

A quote by Benjamin Graham.

"A True Investor is scarcely ever forced to sell his shares & free to disregard current price quotation. He only need pay attention to selling at favorable price. Thus, investor who permits himself to be stampeded or unduly worried by unjustified market declines in his holdings is perversely transforming his basic advantage into his basic disadvantage. That man would be better of if his stocks had no market quotation at all for then he would be spared the mental anguish caused by other persons mistakes of judgement."

His general main idea of securities investment is among others, buying securities/shares of company(s) that have strong earnings, commendable market share, low debt and one that should be around for a long time to come.

A current day flavour of Value Investing, a term most associated with Graham, can also be attained from materials linked to Professor Bruce Greenwald, a Columbia Business School professor.

Until next time, happy investing.

First published on 07/07/2014.