Investment guru Benjamin Grahan
In the world of investing, Benjamin Grahan is a highly respected master. He was not only an exceptional investor, but also an educator and author, leaving behind valuable ideas and wisdom for the investment community. In this article, we'll take a deep dive into Benjamin Grahan's investment philosophy, educational philosophy, and life story to draw inspiration and wisdom from it.
1. Investment philosophy.
Benjamin Grahan's investment philosophy is centered on value investing, advocating that investors should pay attention to the intrinsic value of a company and look for undervalued companies through in-depth analysis of their fundamentals. He believes that the key to successful investment is independent thinking and research, rather than blindly following trends or following the advice of so-called "experts".
Guided by the concept of value investing, Benjamin Grahan emphasizes the in-depth study and analysis of corporate financial statements, and evaluates the intrinsic value of enterprises by evaluating their assets, liabilities, profitability and other indicators. In addition, he pays attention to the management and ownership structure of the company, which he believes has a crucial impact on the long-term development of the company.
In addition to value investing, Benjamin Grahan has proposed many other investment principles and philosophies, such as "don't put all your eggs in one basket" and "investing is a long-term, continuous process". These ideas continue to be important for today's investors.
2. Educational philosophy.
In addition to his outstanding achievements in the field of investment, Benjamin Grahan is also a passionate educator. He is well aware of the importance of the popularization and transmission of investment knowledge to individual investors and the society as a whole, so he is actively engaged in education.
Benjamin Grahan's educational philosophy is mainly concentrated in two books he wrote: "* Analysis" and "The Smart Investor". These two books are regarded as classics in the investment world, providing valuable investment guidance and inspiration to countless investors.
In the book "Analysis", Benjamin Grahan emphasizes the importance of fundamental analysis and details how to evaluate the intrinsic value of **. In addition, he pointed out the common misunderstandings and pitfalls of investors in the investment process, and gave corresponding suggestions and solutions.
Smart Investor is a more easy-to-understand investment guide designed to help investors establish correct investment concepts and master practical investment skills. The book introduces the concept and method of value investing in detail, and gives many specific investment suggestions and case studies.
3. Life deeds.
Benjamin Grahan was born in 1894 and spent his early years at Harvard University, where he studied economics and finance. While in college, he began to pay attention to the ** market and developed a strong interest in investing. After graduating from Harvard University, he began his career in investment banking, where he continued to deepen his understanding and awareness of investments.
Over time, Benjamin Grahan has developed his own investment philosophy and educational philosophy. He has not only achieved outstanding investment performance in practice, but also disseminated his ideas and wisdom to more people through writing books and speeches. Under his influence, value investing has gradually become a mainstream investment philosophy, influencing countless investors.
Throughout his life, Benjamin Grahan remained steadfast in his beliefs and principles and was not shaken by market fluctuations. He is deeply aware that investing is a long-term, continuous process that requires patience and confidence. It is this firm belief and persistent pursuit that has made him a great success in the field of investment.
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Grahan's Stock Selection Criteria (for reference only):
The ratio of the company's profit to stock price (P/E) is 2 times the return of a typical AAA corporate bond.
The company's current P/E ratio should be 2 5, the highest P/E ratio in the last 5 years.
The dividend yield of this company should be AAA rated corporate bond yield 2 3.
The share price of this company should be less than 2 3 percent of the book value of tangible assets per share.
The company's share price should be below 2 3 of the liquidation value of net current assets or net current assets.
Note: These stock selection criteria are for reference only, and you should be cautious in your investment.