Benjamin Graham

Benjamin Graham (1894-1976) was an American economist, professor and professional investor widely recognized as the father of value investing. He developed fundamental investment principles that influenced many successful investors, including Warren Buffett. Graham's most influential works are "Security Analysis" (1934), co-authored with David Dodd, and "The Intelligent Investor" (1949). These books established foundational concepts like intrinsic value, margin of safety, and the difference between investing and speculation. During his career at Columbia Business School, Graham taught and mentored numerous students who went on to become successful investors. His investment firm, Graham-Newman Corporation, achieved annual returns of about 20% from 1936 to 1956. Graham's analytical methods emphasized thorough research, financial ratios, and a conservative approach to stock selection. His concept of "Mr. Market" - illustrating market irrationality - and his principles of defensive investing continue to influence modern investment strategy and theory.

Readers consistently highlight Graham's clear explanation of value investing principles and his emphasis on psychology in investing. Many point to specific concepts like "Mr. Market" and "margin of safety" as transformative for their investment approach. What readers liked: - Practical frameworks for analyzing stocks - Timeless principles that remain relevant - Focus on emotional discipline and risk management - Clear examples and case studies - Technical concepts explained in accessible language What readers disliked: - Dated examples and language from 1940s-50s - Dense technical sections in "Security Analysis" - Repetitive points across chapters - Limited coverage of modern investment vehicles - Basic concepts take multiple re-reads to grasp Ratings: Goodreads: - The Intelligent Investor: 4.3/5 (120k+ ratings) - Security Analysis: 4.3/5 (11k+ ratings) Amazon: - The Intelligent Investor: 4.6/5 (28k+ reviews) - Security Analysis: 4.7/5 (2k+ reviews) Common review quote: "Not an easy read, but worth the effort for serious investors."

Security Analysis (1934) A comprehensive textbook on investment analysis that establishes fundamental principles for evaluating securities, particularly focusing on the thorough analysis of financial statements and the concept of intrinsic value.

The Intelligent Investor (1949) A detailed guide to long-term investment strategy that introduces key concepts such as defensive investing, margin of safety, and the metaphorical "Mr. Market," while distinguishing between investment and speculation.

Storage and Stability (1937) A specialized economic study examining the role of storage and stockpiling of basic commodities in stabilizing the economy and commodity prices.

World Commodities and World Currency (1944) An analysis of international monetary systems and the relationship between commodity prices and currency values, proposing solutions for post-war economic stability.

The Interpretation of Financial Statements (1937) A practical guide explaining how to read and analyze company financial statements, balance sheets, and operating statements for investment purposes.

Philip Fisher developed investment principles focused on qualitative business analysis and long-term growth potential through his work in the 1950s and beyond. His book "Common Stocks and Uncommon Profits" introduced the scuttlebutt method of researching companies through multiple information sources and interviews.

David Dodd collaborated with Graham on "Security Analysis" and continued teaching value investing principles at Columbia Business School. He expanded on Graham's methodologies through his own research and writings on securities analysis and investment fundamentals.

Seth Klarman founded Baupost Group and wrote "Margin of Safety," which builds directly on Graham's principles while addressing modern market conditions. His work focuses on risk management and finding value in overlooked market segments.

Howard Marks writes extensively about market cycles and investment psychology through his memos at Oaktree Capital. His book "The Most Important Thing" examines risk assessment and market behavior through a value investing lens similar to Graham's approach.

Joel Greenblatt developed the "Magic Formula" investing strategy based on Graham's fundamental principles. His books "The Little Book That Beats the Market" and "You Can Be a Stock Market Genius" present systematic approaches to value investing using quantitative metrics.