Benjamin Graham: Who is he? Exploring the history and philosophy of the father of value investing. date_range 8 ส.ค. 2025
Who is Benjamin Graham?
Benjamin Graham is not just an ordinary investor. He is the father of Value Investing and a major inspiration to Warren Buffett, one of the wealthiest individuals in the world today.
Born in 1894 in London, United Kingdom, and later moving to New York, United States as a child, he grew up in a financially troubled family, which became a driving force behind his deep fascination with wealth education.
Origin of Life and Education
After his family fell apart, Greg Hearn refused to give up. He studied hard and was admitted to Columbia University at a young age, graduating at the top of his class with highest honors.
Afterwards, he entered the financial industry and became a securities analyst on Wall Street, where he unleashed his investment ideas.
The way to Wall Street
Greg started working at a financial institution and developed himself into a stock analyst. He did not see stocks as just "papers" or "numbers on a board," but saw each stock as a "real business owner."
What makes him stand out is his systematic thinking, intensity in financial analysis, and psychological perspective on investor behavior.
The Great Economic Crisis and the Lessons Learned
During the years 1929–1932, the United States experienced a major economic downturn known as the Great Depression. While he suffered significant financial losses, Grahame turned that experience into a valuable lesson and developed it into a greater idea.
He concluded that investors should have a "Margin of Safety" in investing - a principle that has become the heart of Value Investing.
The Intelligent Investor
In 1949, Graham wrote the book The Intelligent Investor, which has become the best-selling classic on investment of all time.
In this book, he taught investors to have financial discipline, understand risks, and avoid emotional decision-making.
Warren Buffett has called this book "the best investment book ever written."
Security Analysis: The Bible of the New Era Investment
Prior to The Intelligent Investor, Benjamin Graham and David Dodd co-authored the groundbreaking book Security Analysis, which revolutionized systematic stock analysis using accounting data to evaluate business value.
This book has revolutionized the securities analysis industry forever.
Value Investing Concept
Value Investing is the practice of investing in stocks that are priced lower than their intrinsic value, based on fundamentals of the business such as revenue, earnings, stability, and potential for future growth.
This concept is simple yet powerful, and has been a resilient guide to market changes for many decades.
What is Margin of Safety and why is it important?
Benjamin Graham taught that investors should not buy stocks that are trading at market price, but rather when the price is clearly below the true value. This is to create a "margin of safety" in case the analysis is incorrect.
This is the core "Margin of Safety" that has become the heart of value investors.
Principles of Stock Analysis by Graham.
Benjamin Graham emphasized a "truth and numbers" approach to stock analysis, rather than relying on emotions or rumors. He placed importance on financial statements, balance sheets, income statements, and various financial ratios.
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P/E Ratio (Price to Earnings)
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P/B Ratio (Price to Book)
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Current Ratio
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Debt-to-Equity Ratio
He believes that "value stocks" are stocks with strong fundamentals and prices below their intrinsic value.
Warren Buffet's apprentice to Benjamin Graham.
Greg Hahn is not just a writer or an analyst, but also a professor at Columbia Business School, where he met Warren Buffett, the legendary investor in the world.
Buffett once said, "I have read The Intelligent Investor and it changed my life."
10 Principles of Investing by Benjamin Graham
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Investing in business is not just about stocks.
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Avoid unnecessary risks.
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Always use Margin of Safety.
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Do not chase after greed.
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Emphasize analysis, not profit.
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Seeking stocks below true value
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Avoid investing based on herd mentality.
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Holding stocks for the long term
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Don't be surprised by the changes.
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Invest with reason, not emotion.
Examples of stocks that fall into the Graham principle
For example, businesses in the public utilities or banking sectors that have stable financials, stock prices below their book value, and consistently pay dividends are considered to fit the Graham-style Value Investing approach.
Benjamin Graham and the Stock Market in 2025.
Although technology may change the world dramatically, the value investing mindset remains "intact," especially for investors who are not swayed by price fluctuations or social media trends.
The fundamental business analysis remains a solid defense against risks in an era of information overflow.
Criticism and controversy surrounding Graham's ideas.
Some new-age investors believe that the Graham formula is not suitable for rapidly growing technology companies like Tesla, Amazon, or Meta. However, many argue that the principles of the Graham formula are a "way of thinking" rather than a "hard and fast rule."
How to start value investing the Graham way
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Study Basic Financial Statements
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Use basic metrics to assess value.
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Choose stocks with Margin of Safety
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Avoid following trends.
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View investments as long term.
The impact of Brexit on the financial sector.
Benjamin Graham not only changed the way of investing but also the mindset of analysts worldwide. He pioneered the use of deep data analysis in investing instead of relying on emotions.
The concept of Agile in the age of technology and startups.
While the start-up stocks may not align with the traditional Graham approach, the concept of truly finding value can still be applied to these businesses using other methods such as assessing growth potential, market analysis, and innovation.
"Inspiring quotes from Benjamin Graham"
"The investor’s chief problem—and even his worst enemy—is likely to be himself."
"The biggest problem for investors—and their worst enemy—is often themselves."
"In the short run, the market is a voting machine but in the long run, it is a weighing machine."
"In the short term, the market is like a voting machine, but in the long term, it is a weighing machine."
Guidelines from Graham for new investors:
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Don't rush.
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Know yourself before investing.
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Don't be afraid to wait.
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Invest in what you understand.
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Financial discipline.
Summary: Who is Benjamin Graham?
Benjamin Graham is a symbol of investment intelligence, financial discipline, and systematic analysis.
His principles continue to guide investors around the world, even though decades have passed. Because he didn't just teach us "how to invest," but rather how to "think like an investor."
FAQs about Benjamin Graham, who is he?
Who is Benjamin Graham?
Benjamin Graham is an investor, economist, and author known as the "Father of Value Investing."
What is Benjamin Graham famous for?
He is renowned for writing the books The Intelligent Investor and Security Analysis, which have become the most iconic investment guidebooks in the world.
What is the principle of Gehaam?
Focus on analyzing fundamental business factors and investing when stock prices are lower than their intrinsic value, utilizing the concept of "Margin of Safety".
Is Value Investing still relevant in today's age?
Still applicable, especially in volatile markets, as it emphasizes stability and reduces risks.
Which book by Graham Greene should I read first?
The Intelligent Investor is suitable for beginners, while Security Analysis is suitable for advanced investors.
How are Graham and Buffett related?
Warren Buffett is a disciple of Graham and has followed his investment principles throughout his life.
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