- Benjamin Graham has been called the father of 'Value Investing'. Several Investors, including the legendry Warren Buffet have benefitted immensly from his visionary investment techniques. Benjamin Graham believed that each security has an intrinsic worth that is recognised by the market in the long run. Here are famous qoutes from Benjamin Graham's 'Art of Value Investing':
* The secret of sound investment can be summed up in three words: "Margin of safety"
* Investors should treat themselves as 'Owners of a business' rather than owners of a stock quotation, so focus should be on the underlying soundness of business.
* If you are sure that the markets are too high, it is better to keep your money in cash or Govt. Bonds rather than put it in 'Bargain stocks'.
* It is a great practical mistake to waste time on 'Forecasting the markets'.
Emotional decisions should not be allowed to overrule the market fundamentals. Market gives ample opportunities to buy good stocks at the right price.
* When beggers and shoeshine boys tell you how to get rich, don't be under the illusion that one can get something for nothing. This has been proven right several times in the past: during the US stock market crash of 1929, Harshad Mehta scam of the 1980's and again the recent stock market crash of January 2008. Yet public memory is too short, so we tend to repeat the same mistakes time and again.
Graham's investments mainly focussed on bargain stocks based on earnings potential or asset values. For this one needs to scan the balance sheets of the companies. Currently, with the markets in turmoil due to global oil crises and rising inflation, offer many such bargain buys. One just needs sometime to look at their balance sheets (most of the companies have already declared their annual results).
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