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The Intelligent Investor
''The Intelligent Investor'' by Benjamin Graham, first published in 1949, is a widely acclaimed book on value investing. The book provides strategies on how to successfully use value investing in the stock market. Historically, the book has been one of the most popular books on investing and Graham’s legacy remains. Background and history ''The Intelligent Investor'' is based on value investing, an investment approach Graham began teaching at Columbia Business School in 1928 and subsequently refined with David Dodd. This sentiment was echoed by other Graham disciples such as Irving Kahn and Walter Schloss. Warren Buffett read the book at age 20 and began using the value investing taught by Graham to build his own investment portfolio. ''The Intelligent Investor'' also marks a significant deviation to stock selection from Graham's earlier works, such as ''Security Analysis''. Which is, instead of extensive analysis on individual company, just apply simple earning criteria and ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Benjamin Graham
Benjamin Graham (; né Grossbaum; May 9, 1894 – September 21, 1976) was a British-born American economist, professor and investor. He is widely known as the "father of value investing", and wrote two of the founding texts in neoclassical investing: ''Security Analysis'' (1934) with David Dodd, and ''The Intelligent Investor'' (1949). His investment philosophy stressed investor psychology, minimal debt, buy-and-hold investing, fundamental analysis, concentrated diversification, buying within the margin of safety, activist investing, and contrarian mindsets. After graduating from Columbia University at age 20, he started his career on Wall Street, eventually founding the Graham–Newman Partnership. After employing his former student Warren Buffett, he took up teaching positions at his '' alma mater,'' and later at UCLA Anderson School of Management at the University of California, Los Angeles. His work in managerial economics and investing has led to a modern wave of value ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Inflation
In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money. The opposite of inflation is deflation, a sustained decrease in the general price level of goods and services. The common measure of inflation is the inflation rate, the annualized percentage change in a general price index. As prices do not all increase at the same rate, the consumer price index (CPI) is often used for this purpose. The employment cost index is also used for wages in the United States. Most economists agree that high levels of inflation as well as hyperinflation—which have severely disruptive effects on the real economy—are caused by persistent excessive growth in the money supply. Views on low to moderate rates of inflation are more varied. Low or moderate inflation may be attri ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
1949 Non-fiction Books
Events January * January 1 – A United Nations-sponsored ceasefire brings an end to the Indo-Pakistani War of 1947. The war results in a stalemate and the division of Kashmir, which still continues as of 2022. * January 2 – Luis Muñoz Marín becomes the first democratically elected Governor of Puerto Rico. * January 11 – The first "networked" television broadcasts take place, as KDKA-TV in Pittsburgh, Pennsylvania goes on the air, connecting east coast and mid-west programming in the United States. * January 16 – Şemsettin Günaltay forms the new government of Turkey. It is the 18th government, last single party government of the Republican People's Party. * January 17 – The first VW Type 1 to arrive in the United States, a 1948 model, is brought to New York by Dutch businessman Ben Pon. Unable to interest dealers or importers in the Volkswagen, Pon sells the sample car to pay his travel expenses. Only two 1949 models are sold in Americ ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
John Burr Williams
John Burr Williams (November 27, 1900 – September 15, 1989) was an American economist, recognized as an important figure in the field of fundamental analysis, and for his analysis of stock prices as reflecting their " intrinsic value". He is best known for his 1938 text ''The Theory of Investment Value'', based on his PhD thesis, in which he articulated the theory of discounted cash flow (DCF) based valuation, and in particular, dividend based valuation. Biography Williams studied mathematics and chemistry at Harvard University, and enrolled at Harvard Business School in 1923. After graduating, he worked as a security analyst, where he realised that "how to estimate the fair value was a puzzle indeed... To be a good investment analyst, one needs to be an expert economist also." In 1932 he enrolled at Harvard for a PhD in economics, with the hopes of learning what had caused the Wall Street Crash of 1929 and the subsequent economic depression of the 1930s. For his thesis, J ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Benjamin Graham Formula
The Benjamin Graham formula is a formula for the valuation of growth stocks. It was proposed by investor and professor of Columbia University, Benjamin Graham - often referred to as the "father of value investing". Published in his book, ''The Intelligent Investor'', Graham devised the formula for lay investors to help them with valuing growth stocks, in vogue at the time of the formula's publication. Graham cautioned here that the formula was not appropriate for companies with a "below-par" debt position: "My advice to analysts would be to limit your appraisals to enterprises of investment quality, excluding from that category such as do not meet specific criteria of financial strength". Formula calculation In Graham's words: "Our study of the various methods has led us to suggest a foreshortened and quite simple formula for the evaluation of growth stocks, which is intended to produce figures fairly close to those resulting from the more refined mathematical calculations." ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Aetna
Aetna Inc. () is an American managed health care company that sells traditional and consumer directed health care insurance and related services, such as medical, pharmaceutical, dental, behavioral health, long-term care, and disability plans, primarily through employer-paid (fully or partly) insurance and benefit programs, and through Medicare (United States), Medicare. Since November 28, 2018, the company has been a subsidiary of CVS Health. The company's network includes 22.1 million medical members, 12.7 million dental members, 13.1 million pharmacy benefit management services members, 1.2 million Health professional, health-care professionals, over 690,000 primary care doctors and specialists, and over 5,700 hospitals. Aetna is descended from Aetna (Fire) Insurance Company of Hartford, Connecticut. The name of the company is based on Mount Etna, at the time the most active volcano in Europe. History 1800s * ''1819'': Henry Leavitt Ellsworth, Yale University, Yale gra ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Margin Of Safety (financial)
A margin of safety (or safety margin) is the difference between the intrinsic value of a stock and its market price. Another definition: In break-even analysis, from the discipline of accounting, margin of safety is how much output or sales level can fall before a business reaches its break-even point. Break-even point is a no-profit, no-loss scenario. History Benjamin Graham and David Dodd, founders of value investing, coined the term margin of safety in their seminal 1934 book, ''Security Analysis''. The term is also described in Graham's ''The Intelligent Investor''. Graham said that "the margin of safety is always dependent on the price paid". Application to investing Using margin of safety, one should buy a stock when it is worth more than its price in the market. This is the central thesis of value investing philosophy which espouses preservation of capital as its first rule of investing. Benjamin Graham suggested to look at unpopular or neglected companies with low P/E ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
