Benjamin Graham, born Benjamin Grossbaum, was an American economist and investor who is widely regarded as the father of value investing. He was born on May 8, 1894, in London, England, and later relocated to the United States. Graham's seminal work, "The Intelligent Investor," published in 1949, is considered a definitive guide on value investing.
As an economist, Graham emphasized the importance of conducting thorough analysis and research to determine a company's intrinsic value. He introduced the concept of a "margin of safety," which involves purchasing securities at a price significantly below their intrinsic value to minimize investment risks. This approach influenced generations of investors and shaped the foundation of value investing.
Graham also stressed the importance of financial statements analysis, specifically scrutinizing the balance sheet and income statement to evaluate a company's health and financial position. His principles laid the groundwork for fundamental analysis and became fundamental in determining the worth of stocks.
In addition to his role as an economist, Graham taught at Columbia Business School, where he mentored prominent investors, including Warren Buffett. His teachings and profound influence on the investment community continue to be referenced and revered to this day.
Overall, Benjamin Graham was an influential economist and investor who championed the principles of value investing, emphasizing thorough analysis, the concept of a margin of safety, and the careful evaluation of financial statements to determine a stock's intrinsic value.
