Benjamin Graham Fansite

My photo

 

Welcome to BenjaminGraham.info - Benjamin Graham Biography

Benjamin Graham (May 8, 1894-Sept. 21, 1976), known as "the Father of Modern Security Analysis" and "the Dean of Wall Street," was an economist and professional investor. Graham was an influential figure whose work was studied and followed by such greats as Warren Buffet, Irving Kahn, John Neff and Charles Brandes (Buffet and Kahn would later name their children, Howard Graham Buffet and Thomas Graham Kahn, after him). Graham was also an author, with his books Security Analysis and The Intelligent Investor unofficially regarded as the "bibles" of Wall Street investors.

Born Benjamin Grossbaum, in London, UK, Graham grew up in New York City. The family changed its name to Graham in the wake of a World War I anti-German sentiment. The death of his father, who had worked as an importer, when Graham was a child left the family in poverty. His difficult beginnings did not discourage Graham, who met the challenges by becoming a model student, eventually graduating from Columbia University as class salutorian at the age of 20.

Upon his graduation from Columbia, Graham declined an offer teach English, Philosophy and Mathematics, instead taking a job on New York's Wall Street. Working with the organization Newburger, Henderson and Loeb, his talents were quickly recognized, and he became a partner at the company at the age of 25.

Graham began lecturing at night at Columbia University in 1926. During the day, Graham had just formed a partnership with investor Jerome Newman. The partnership was shaken, but survived, the devastating Wall Street stock market crash of 1929. Graham, who was now married, suffered financially, and his wife returned to work temporarily as a dance teacher during this turbulent time; it is said that this turbulent time encouraged Graham to write his first successful book, Security Analysis, in 1934, with co-author David Dodd. Neither Security Analysis nor Graham's 1949 The Intelligent Investor has ever been out of print.

Graham is well-known for his "Mr. Market" allegory. In this illustrative story, "Mr. Market" knocks daily at his stockholder's door to propose buying or selling his shares at a different price each time. Whether the stockholder agrees or sends Mr. Market away, Mr. Market is sure to return the next day with yet another new price, whether rational, ridiculous or somewhere in between. The lesson of the allegory is that the rational investor should not rely on Mr. Market's ever-changing whims to determine the actual value of a stock at any time, but should instead focus on the actual performance of his companies and dividends on a day-to-day basis.

In addition to Security Analysis and The Intelligent Investor, Graham wrote four books and at least seven major papers still referred to today. In addition to his published works, Graham is remembered for his contributions as a Columbia University professor, with students such as Warren Buffet successfully following Graham's tutorship. He is also noted to have made investments in major companies, including his purchase of auto insurance company Geico in 1948. He died in 1976.