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Who was Benjamin Graham?

Benjamin Graham (1894–1976) was a renowned economist, professor, investor, and one of the most influential figures in the field of value investing. He is often referred to as the “father of value investing.” Graham’s investment philosophy has had a profound impact on the way investors approach the stock market, and his teachings continue to be influential today.

Here are key aspects of Benjamin Graham’s life and contributions:

1. Early Life and Education:
   • Benjamin Graham was born on May 9, 1894, in London, England. His family later moved to New York City, where he grew up. Graham attended Columbia University, where he studied economics and graduated in 1914.
2. Teaching Career:
   • After completing his education, Graham began teaching at Columbia University. He taught there for many years and became a professor at the Columbia Business School. Graham’s teaching style and principles laid the foundation for what would later be known as value investing.
3. Authorship:
   • Graham authored several influential books on investing. His most famous work, “Security Analysis,” co-written with David Dodd and first published in 1934, is considered a classic in the field of investment literature. Another notable work is “The Intelligent Investor,” published in 1949, which distilled his investment philosophy for a broader audience.
4. Value Investing Philosophy:
   • Graham’s investment philosophy, often referred to as “value investing,” emphasized the importance of analyzing the intrinsic value of a stock relative to its market price. He advocated for a margin of safety, recommending that investors buy stocks when their market price is significantly below their intrinsic value to protect against downside risk.
5. Net-Net Investing:
   • Graham was known for his advocacy of “net-net” investing, where investors focus on stocks trading at a price below their net current asset value (current assets minus total liabilities). This approach was a key component of his value investing strategy.
6. Mentorship to Warren Buffett:
   • One of Graham’s most famous disciples is Warren Buffett, who went on to become one of the most successful investors in history. Buffett studied under Graham at Columbia Business School and later worked for Graham-Newman Corporation, Graham’s investment partnership.
7. Later Career:
   • Graham retired from teaching in 1956 but remained active in the investment world. He continued to write and consult, contributing to the development of investment strategies and principles.
8. Legacy:
   • Benjamin Graham’s legacy extends beyond his academic and professional achievements. His teachings laid the groundwork for value investing, influencing generations of investors. The principles he emphasized, such as the importance of fundamental analysis and a disciplined, long-term approach to investing, remain cornerstones of successful investment strategies.

Benjamin Graham passed away on September 21, 1976. His impact on the world of investing continues to be felt, and his books remain essential reading for anyone interested in the principles of value investing.