The Grandfather of Value Investing
Value investing is well known because it was popularized by some of the world’s most successful investors, from Graham himself to Peter Drucker, Warren Buffet and many more. I think that the school’s success has to do with its accessibility, as this methodology does not require advanced mathematics or broad financial knowledge. Rather it presents some very rational ideas on what investing in the stock market should entail.
However, today’s markets are full of intelligent people playing complicated mathematical games or inventing new models for pricing companies that don’t generate income, something incomprehensible to a Graham disciple. In the light of this environment, even simpler investors may scoff at the idea of slow growth value.
And if you were to play the buy and hold game in the last decade, you may have seen that your investments in solid blue chips and profit earners were net going nowhere.
So why bother with starting here? Because the ultimate truth of playing the market is what this book is best at getting across: the easiest way to make money is to not lose money.