“An investment operation is one which, upon thorough analysis promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.”
Lots of things can be said about Benjamin Graham. And one article or one page certainly wouldn’t be sufficient to emphasize the incredible influence his work has had over the investment profession, even today.
It was difficult to choose a quote from so many inspiring insights to get from his writings.
Yet, I chose this one above, as it frames the investment field with two main objectives: Safety of principal and adequate return.
Most of all, these requirements are deducted from a thorough analysis of the considered asset.
No need to remind that Benjamin Graham is often recalled as the “father of fundamental analysis“.
These words remind by themselves the difference between speculation driven by market moods, and investment driven by common sense and logic analysis.
He has proven the latter to be a winner. Over the long term, it is a champion strategy.
So many famous investors have been influenced and shaped with his thoughts, such as Warren Buffett and Seth Klarman, only to name two of them.
When thinking about investing, if I was to say just one thing about Benjamin Graham to a beginner investor, it would be that he understood and lived by the power of facts. Only by them he would trigger the purchase of a stock.
For a much more overview of Benjamin Graham, I invite you to hear about him from Warren Buffett himself, a close friend and former student and employee of him in the following video: