Benjamin Graham

Benjamin Graham (May 8, 1894–September 21, 1976) was an American economist and investor. He was born in London, graduated from Columbia University at the age of 20, and became Warren Buffett’s teacher in 1950.

Graham is the author of The Intelligent Investor, a seminal book on value investing that Warren Buffett called “by far the best book on investing ever written.” Buffett was just one of Graham’s disciples. Graham also taught or influenced Mario Gabelli, John Neff, Michael Price and John Bogle. 

Why do we have an investment newsletter named after Benjamin Graham at Cabot? First, Graham is widely celebrated as “The Father of Value Investing.” He created the process of evaluating companies to find their intrinsic value. Graham could thereby purchase companies with undervalued stock prices and avoid buying companies with over-inflated prices.

Cabot Benjamin Graham Value Investor recommends stocks based on the Benjamin Graham investing system. Graham analyzed every company according to seven factors: profitability, stability, earnings growth, financial position, book value, dividends and price history. He analyzed every potential investment based on these factors to determine which companies were clearly undervalued.

A key concept of the Benjamin Graham system is the Margin of Safety, which is achieved by buying a stock only when it falls below its maximum buy price. That price is calculated using the metrics that determine the intrinsic value of a company. Strict adherence to the rule of buying only below the maximum buy price will minimize potential losses while maximizing potential profits.

In essence, Graham developed a whole new approach to investing based on principles of measuring a stock’s price versus its intrinsic value. For nearly a full century, that approach has beaten the market. Since 1926, the Benjamin Graham value investing approach has achieved average annual returns of 20% a year.

Using Graham’s principles, our value investing expert J. Royden Ward has achieved similar returns for his subscribers. Since Cabot Benjamin Graham Value Investor's inception in 2002, Roy’s recommendations have generated a 258% return for his readers—more than double the 117% return in the S&P 500 over that time span.

Cabot Benjamin Graham Value Investor caters to conservative investors looking for low-risk, high-quality stocks that other investors have overlooked. The Investor adheres to Graham’s principles of providing a margin of safety by recommending only stocks that are clearly trading below their intrinsic value.

Benjamin Graham was a pioneer of financial analysis who is still recognized today as one of Wall Street’s most successful investors. By embracing his core principles of value investing, we have achieved Graham-like returns for our subscribers and expect to continue doing so for years to come 

Analysts Center

Our analysts regularly share content from their premium advisories. See a sampling of our analysts’ unique takes on current market conditions and how they impact a wide range of investments.


Benjamin Graham and the Seven Criteria for Picking Value Stocks

Benjamin Graham, known as the "Father of Value Investing," has seven time-tested criteria for picking value stocks. Value investing is concerned with the fundamentals of a company.»

Short Biography of Benjamin Graham

Benjamin Graham systematized the process of evaluating companies, with the goal of finding low-risk investments that would reward over the long run. »

Some Value Investing History

The investment principles taught by Graham at Columbia University became legend in the field of professional stock analysis.»

Benjamin Graham's Mr. Market

Benjamin Graham points out that the investor should not regard the whims of Mr. Market as determining the value of the shares that the investor owns.»

Warren Buffett - Seven Value Investing Guidelines

Warren Buffett learned well from Benjamin Graham, and made one successful investment after another. These seven guidelines will help you to invest like Warren Buffett.»

Stock Picks

Blackbaud

Blackbaud is the market leader in the nonprofit fundraising industry.

Kroger

Roy Ward says the stock is an attractive, low-risk buy here.

Zions Bancorporation

This attractive mid-cap bank stock is surprising the market with consistently stronger financial performance.

Cabot Wealth Advisory

The Problem with “Free” Investing Tips

By Paul Goodwin on August 26, 2016

Anyone who recommends a stock, but fails to provide any guidance on how to manage that stock, isn’t giving you anything of much value. Free stock tips are being given away constantly on the internet. And that’s pretty much what they’re worth.Read More >

Are Fed Rate Hikes Bad for the Stock Market?

By Michael Cintolo on August 25, 2016

The stock market has been in a holding pattern, waiting to see what Janet Yellen will say on Friday. Recent history suggests investors are rooting for the wrong outcome.Read More >

Ten Undervalued Stocks to Buy Now

By J. Royden Ward on August 23, 2016

When looking for undervalued stocks, you want to companies with good growth prospects too. Here are 10 that fit that bill.Read More >