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

Prudential Financial

This stock stands out because it easily fits all of Benjamin Graham's criteria.

Whirlpool

With home-building strong, this stock's prospects for recovery are excellent.

Nevro

NVRO is still behaving well, supported by the buying power of investors who are just discovering the stock.

Cabot Wealth Advisory

The Growth Stock Diet

By Paul Goodwin on February 11, 2016

While there isn’t any substitute for the diet and exercise you promised yourself you’d do six weeks ago, there’s a stock diet that will allow you to make huge progress in your equity portfolio. It’s called the SNaC Diet, and it’s the best way to get your portfolio in shape, even if you can’t seem to make progress in the campaign against your love handles. SNaC stands for Story, Numbers and Chart, and it’s the method I use to pick growth stocks for the Cabot Emerging Markets Investor.Read More >

Five Steps of a Market Bottom: Where are We?

By Michael Cintolo on February 09, 2016

In my January 28 Cabot Wealth Advisory, I wrote about the five key characteristics to look for as the market builds a bottom. The market has deteriorated further since then, so I thought you’d benefit from brief updates in my upcoming Wealth Advisories (starting today) so you can see how the process is playing out until the bulls re-take control of the market.Read More >

Apple (AAPL) and Zika

By Timothy Lutts on February 08, 2016

The best time to buy Apple (AAPL) was in 2003 after the Internet Bubble had burst and technology stocks were treated like dirt. Of course, no one wanted AAPL back in 2003, but in the 13 years that followed, the stock soared 9,400%. The best time to sell AAPL was in mid-2012, when AAPL became the world’s most valuable company. Read More >