Benjamin GrahamBenjamin Graham (; néGrossbaum; May 9, 1894 – September 21, 1976) was an English-Americanfinancial analyst, economist, accountant, investor and professor. He is widely known as the "father of value investing", and wrote two of the discipline's founding texts: Security Analysis (1934) with David Dodd, and The Intelligent Investor (1949).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.
David DoddDavid LeFevre Dodd (August 23, 1895 – September 18, 1988) was an American educator, financial analyst, author, economist, and investor. In his student years, Dodd was a and colleague of Benjamin Graham at Columbia Business School. The Wall Street crash of 1929 (Black Tuesday) almost wiped out Graham, who had started teaching the year before at his alma mater, Columbia. The crash inspired Graham to search for a more conservative, safer way to invest.Value investingValue investing is an investment paradigm that involves buying securities that appear underpriced by some form of fundamental analysis. Modern value investing derives from the investment philosophy taught by Benjamin Graham and David Dodd at Columbia Business School starting in 1928 and subsequently developed in their 1934 text Security Analysis.
Mr. MarketMr. Market is an allegory created by investor Benjamin Graham to describe what he believed were the irrational or contradictory traits of the stock market and the risks of following groupthink. Mr. Market was first introduced in his 1949 book, The Intelligent Investor. AllegoryCharacterGraham asks the reader to imagine that they are one of the two owners of a business, along with a partner called Mr. Market.
Intrinsic value (finance)In finance, the intrinsic value of an asset or security is its value as calculated with regard to an inherent, objective measure. As a distinction, the asset's price is determined relative to other similar assets. The intrinsic approach to valuation may be somewhat simplified, in that it ignores elements other than the measure in question.
Columbia Business SchoolThe Columbia University Graduate School of Business, branded asColumbia Business School (CBS), is the business school of Columbia University, a privateresearch university in New York City. Established in 1916, Columbia Business School is one of six Ivy League business schools and one of the oldest business schools in the world. HistoryThe school was founded in 1916 with 11 full-time faculty members and an inaugural class of 61 students, including 8 women.
Irving KahnIrving Kahn (December 19, 1905 – February 24, 2015) was an American investor and philanthropist. He was the oldest living active investor. He was an early disciple of Benjamin Graham, who popularized the value investing methodology. Kahn began his career in 1928 and continued to work until his death. He was chairman of Kahn Brothers Group, Inc., the privately owned investment advisory and broker-dealer firm that he founded with his sons, Thomas and Alan, in 1978.
Columbia UniversityColumbia University in the City of New York, commonly referred to as Columbia University, is a private Ivy League research university in New York City, United States. Established in 1754 as King's College by royal charter under George II of Great Britain on the grounds of Trinity Church in Manhattan, it is the oldest institution of higher education in New York and the fifth-oldest in the United States.
Wall StreetWall Street is a street in the Financial District of Lower Manhattan in New York City. It runs eight city blocks between Broadway in the west and South Street and the East River in the east with a length of just under 2,000 feet. The term "Wall Street" has become a metonym for New York City and companies located there, the financial markets of the United States, American financial services industry, New York–based financial interests, or the Financial District.
Great DepressionThe Great Depression was a severe global economic downturn from 1929 to 1939. The period was marked by high rates of unemployment and poverty, drastic reductions in industrial production and international trade, and widespread bank and business failures around the world. The economic contagion began in 1929 in the United States, the largest economy in the world, with the devastating Wall Street crash of 1929 often considered the beginning of the Depression.
McGraw HillMcGraw Hill, Inc. is an American education science company that provides educational content, software, and services for students and educators across various levels—from K-12 to higher education and professional settings. It produces textbooks, digital learning tools, and adaptive technology to enhance learning experiences and outcomes. It is one of the "big three" educational publishers along with Houghton Mifflin Harcourt and Pearson Education.*As an Amazon Associate I earn from qualifying purchases.