Adjusting the Benjamin Graham Enterprising Investor Screen
Since 1934, the works of Benjamin Graham have helped to guide individual and professional investors in their quest to make good investment decisions.
Graham’s intrinsic value approach grew out of the lessons learned from the stock market crash of 1929. Rather than trying to beat the market by seeking the best companies in the hottest industries, Graham argued that it is safer to build a portfolio of undervalued stocks that are being ignored or discriminated against by the market. Graham’s approach focused on the concept of an intrinsic value that is justified by a firm’s assets, earnings, dividends and financial strength.
Graham’s philosophy continues to flourish through two primary books: “Security Analysis,” co-authored with David Dodd, and “The Intelligent Investor.” “Security Analysis” was first released as a college investment textbook back in 1934 and was most recently revised in 2008 (sixth edition, McGraw-Hill). “Security Analysis” presents the investment process by covering the analysis of the economy, sectors and industries, financial statements, and bonds and stocks. “Security Analysis” is still used as a textbook at Columbia Business School.
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