PROFILE:
Benjamin Graham known as "the father
of value Investing" and the "dean of Wall Street," Graham (1894-1976)
excelled at making money on the stock market for
himself and his clients—without taking big risks. Graham created and taught
many principles of investing safely and successfully that modern investors
continue to use today.
STRATEGY:
Graham used a conservative, risk-averse
approach that focused as much on preserving capital as it did on producing big
gains. The strategy focuses on value stocks with good quality financial
characteristics. It uses Price-to-Earnings
as a valuation measure and looks for larger companies with consistent track
record of earnings and dividend growth, manageable debt and a high
current ratio. A key concept behind his approach was the ‘Margin of Safety’
– The difference between a stock’s price and the value of its underlying
business. Graham focused on stocks with high margin of safety (meaning their
stocks were selling on the cheaper side compared to what he believed to be the
intrinsic value of their businesses), because their already low prices offered
significant downside protection.
To know more about the Fundamentals of
these Stocks, write us at finvestedge.in@gmail.com
This is for informational purposes only.
It is not a solicitation to buy, sell in securities or other financial
instruments.
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