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's Seven Criteria for Picking Value Stocks

Here are Benjamin Graham's seven time-tested criteria to identify strong value stocks.»

Short Biography of Benjamin Graham

Benjamin Graham was born in London in 1894. (His original name was Grossbaum, but he changed it as a young man, the better to fit into the Wall Street environment.)»

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

One of Benjamin Graham's favorite parables is that of Mr. Market. Graham refers to him several times in his book, The Intelligent Investor.»

Warren Buffett's Seven 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

Ross Stores

McKesson (MCK) distributes ethical and proprietary drugs, surgical supplies and health and beauty products throughout North America to the healthcare industry. The company also provides technical consulting services to biotech and pharmaceutical manufacturers.

Carnival Cruise Lines

Having just returned from vacation, Tim Lutts is thinking of the millions of baby-boomers who are spending more and more money on leisure travel, particularly on cruises, an industry that is dominated by a few big players.

China Biologic Products

Paul Goodwin advises putting this stock on your watch list.

Cabot Wealth Advisory

Sell Apple

By Timothy Lutts on July 27, 2015

Today, I’m writing on a MacBook Pro. This morning I did my morning crossword puzzle on my iPad. All day long, my iPhone is by my side. My home Wi-Fi comes from Apple AirPorts. And some nights, I stream entertainment through my Apple TV. In short, I love Apple products, and I expect to continue using them for many more years. But one of the most important market truisms is this: “The company is not the stock.”Read More >

Sunny Days

By Paul Goodwin on July 24, 2015

Every year, usually on a Thursday in July, most of the Cabot crew gathers in Salem, jumps into cars and heads north. With bathroom breaks and a stop to purchase refreshing beverages (ahem), the group drives through New Hampshire’s tiny seacoast neck and winds up in Kittery, Maine, at the Chauncey Creek Lobster Pound. There, lobsters, baked beans, coleslaw, steamers, mussels and (importantly) chips are consumed and the store of tissue-restoring beverages is significantly reduced.Read More >

What Will Rising Interest Rates Really Mean for the Stock Market

By Chloe Lutts Jensen on July 23, 2015

Long before Greece and China started making the largest headlines every day, investors everywhere thought rising interest rates would cause the next big market decline. (As my father always says, trouble comes from where you least expect it.) Now that Greece has secured a respite from its lenders, interest rates are moving back to the top of investors’ list of things to worry about—especially since Janet Yellen just reiterated last week that the Fed expects to begin raising rates by the end of the year.Read More >