Ben Graham's Value Approach: Can it Still Work?

Journal of Investment Management, Vol. 1, No. 3, Third Quarter 2003

Posted: 1 Apr 2004

See all articles by Martin S. Fridson

Martin S. Fridson

Lehmann, Livian, Fridson Advisors LLC

Abstract

Price collapses in dotcoms and telecoms have fostered a comeback in the fundamental analysis identified with Benjamin Graham (1894-1976). Defining Graham's method is no simple task, however; his thinking evolved considerably over a 60-year career. Reducing Graham's approach to a quantitative formula does not produce superior performance. His most celebrated pupil, Warren Buffett, freely acknowledges buying entirely different stocks than Graham would. Graham's notion of paying less than breakup value remains a useful pricing concept. Investors must do hard analytical work, however, to separate the nuggets from the worthless overburden.

Keywords: Ben Graham

JEL Classification: G00

Suggested Citation

Fridson, Martin S., Ben Graham's Value Approach: Can it Still Work?. Journal of Investment Management, Vol. 1, No. 3, Third Quarter 2003. Available at SSRN: https://ssrn.com/abstract=496103

Martin S. Fridson (Contact Author)

Lehmann, Livian, Fridson Advisors LLC ( email )

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Suite 501
New York, NY 10022
United States

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