This issue examines a simple value approach for investing in common stocks championed by Benjamin Graham just before his death in 1976. One would think that there is little relevant information to obtain from studying works of the father of fundamental investing 30 years after his death, but the opposite is true.
While Benjamin Graham may have co-authored and released the first edition of “Security Analysis” in 1934, he understood that the market is ever-changing and therefore he changed his approach to stock selection over time. As our feature article reveals, toward the end of his career, he basically felt that the in-depth analysis presented in “Security Analysis” would not reward most investors with a high enough return to justify the effort. The low-hanging fruit was already picked by the many professional analysts, and investors could do better by taking advantage of the emotions of the marketplace.
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