Benjamin Graham

 

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Benjamin Graham Famous As: Economist, Investor

Nationality: American

Birth Date: 9th May, 1894AD

Died On: 21 September 1976AD

  • Benjamin Graham, widely known as the ‘Father of Value Investing’, was an American Economist and Investor.
  • He came into the world in 19th Century. Later, at the age of nine, Benjamin lost his father.
  • His exceptional concepts managerial economics have led to development of value of value investing within different investment vehicles like hedge funds, mutual funds, diversified holding companies.

 

Childhood and Early Life :-

  • He was born as a Benjamin Grossbaum on 9th May, 1894, in London, England into a family of Jew.
  • Being a bright student at school, Benjamin entered into the Columbia University on a scholarship, graduating in 1914 and achieving the second rank of his class.
  • Moreover, prior to graduation, the University offered him teaching positions in three different faculties : Latin Philosophy, English, Greek and Mathematics.

 

 BENJAMIN GRAHAM ‘S Early Career :-

  • Benjamin began his career as a messenger at the Newburger, Henderson and Loeb, a brokerage firm at the Wall Street, in 1914.
  • His main job was to write scores on the blackboard, initially. But very soon and in the latter part, Benjamin was doing financial researches for the firm.
  • Rising through the ranks exceptionally quickly, in 1920, Benjamin became a partner of Newburger, Henderson and Loeb.
  • Soon he was earning $50,000 per year. Moreover, he changed his surname from Grossbaum to Benjamin Graham, to suit the Wall Street Ambience.

 

Noted Moments :-

  • During late 1920s The Northern Pipeline Affair was formed, the ripple effect established Benjamin Graham as a brilliant Shareholder activist and a an Analyst.
  • Also Benjamin Graham’s performance in the stock market attracted the attention of many young would – be investors, one of them was Edward Buffet.
  • In 1951, also Warren Buffet approached graham in his company, wishing to work in the Stock Market.

 

Major Works :-

  • Benjamin Graham’s two books were a great success, “The Intelligent Investor”and“Security Analysis”. Both of the books dealt majorly in value investing.
  • He is also famous for devising, what we now call “Benjamin Graham Formula”, published in ‘The Intelligent Investor’. The formula helps the investors to quickly determine the price rationality of their stocks.
  • Benjamin Grahams concepts such as on minimal debt, buy and holding investment, psychology, buying within the margin of safety, fundamental analysis, and contrarian mindsets are still being used. The serious investors use it  all over the world.

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