Investing Lessons from 2016 that Ben Graham May Give a Nod To

It’s the time of year when holiday party-goers lament their seasonal overindulgences and commit to “turning over a new leaf” on January 1st— promises to hit the gym every day, clear the pantry of junk food and turn off devices during family time are among the hopeful resolutions traded over hors d’oeuvres and prosecco. It’s also a time for reflection on the year that’s passed and setting in place a plan for the year ahead. When it comes to investing, a good way to prepare for the year ahead is to take inventory of the events, trends, and missteps that […]

Investing Principles Part II: Identifying Value in Earnings

This section of the Tweedy Browne publication What Has Worked In Investing referenced in yesterday’s blog describes the investment approach related to low price in relation to earnings. Legendary value investor Benjamin Graham’s focused on what he called the “margin of safety” (the difference between a stock’s price and the company’s underlying value) and gravitated toward stocks that had price-earnings ratios below 15. The Tweedy publication references a study that tested Graham’s criteria on stocks listed on the NYSE-AMEX index (between 1974 and 1981). Results show that an investor who employed Graham’s criteria during this period achieved a mean annual […]