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Hall of fame – Benjamin Graham

Benjamin Graham is an American economist and one of the top investors. He was born on May 9 1894, in London, to a Jewish family. Later Mr. Graham shifted to New York City with his family when he was just one year old. He experienced poverty after his father’s death. His graduation was from Columbia University. Further, Mr. Benjamin was salutatorian of his class at the age of 20. Also, he got an offer to work as an instructor in English, Mathematics, and philosophy. But he refused that offer and started working on Wall Street. 

 

In addition to this, Benjamin Graham has taught famous student like Warren Buffett, William J. Ruane, Irving Kahn, and Walter J. Schloss. He is the father of value investing.

 

Security Analysis and The intelligent investor

Benjamin Graham’s first book was ‘security analysis’ in collaboration with David Dodd. This book was published in the year 1949. Furthermore his other book ‘The intelligent investor’ was published in 1949. Graham advised the market participant to first find out the difference between investment and speculation.

Further, Benjamin Graham said that owner of equity stock should not worry about the fluctuation in the stock prices. He differentiated the active investor and passive investor. According to him, active investors are those, who are interested in the market, are risk takers, and make money out of stocks. The passive investors are the defensive investor, buys for the long term.

Also, Graham suggested that investors should analyze the financial status of the company. Graham said that investment is more meaningful when it is purposeful. He lost his money in the stock market crash of 1929 and he wrote a book ‘security analysis’. In addition to this he was also known as the ‘Dean of Wall Street’.

Benjamin Graham died on September 29, 1976, at the age of 82.

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