Sunday, April 10, 2011

Benjamin Graham - Buffett's mentor


The source of Buffett's success

Warren Buffett has attributed much of his success to the investment philosophy of the legendary Wall St analysist Benjamin Graham.
In an introduction to Graham’s continuing best-seller, The Intelligent Investor, Buffett says that Graham, more than anyone except Warren’s father, influenced his life.
"It is difficult to think of possible candidates for even the runner up position in the field of security analysis."

Benjamin Graham Resources at Warren Buffett Secrets:

Biography of Benjamin Graham
Graham's Investment Philosophy
Mr Market
The Margin of Safety
Review of The Interpretation of Financial Statements
Review of The Intelligent Investor

Mini-biography of Graham

Benjamin Graham was a conservative in his financial teachings and introduced the concept of looking at share investment as buying a share in a business, rather than as a stand-alone investment. Graham also devised Mr Market, the concept of the stock market as a schizophrenic entity equally willing to sell you a commodity or buy one from you.
Read our full biography of Graham

The lessons of Benjamin Graham

According to Warren Buffett, the two essential things that you can learn from Graham's outlook are:
Ignoring market fluctuations in investment analysis (Mr Market)
Investing with a margin of safety
Graham’s investment tenets have been both followed and modified, not only by Buffett, but other legendary and successful investors like Walter Schloss of WJS Partners, Tom Knapp and Ed Anderson of Tweedy Browne Partners and Bill Ruane’s Sequoia Fund.

External resources

More on Benjamin Graham (PDF File)

Warren Schloss Resources

Schloss Archives at Columbia Business School

Tweedy Browne Resources

Tweedy, Browne Company

Sequoia Fund

Sequoia Fund, Inc

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