Value investing: lessons from Benjamin Graham and Warren Buffett
What is value investing and what are the key principles of this framework?
The term “value investing” is frequently used but not always understood. Let’s delve a little into investment philosophy, as defined and practised by two of its most famous exponents, Benjamin Graham and Warren Buffett. Graham is widely considered to be the inventor of the value investing approach to investing, publishing two books on the topic – Security Analysis, and The Intelligent Investor. Buffett – a famous investor in his own right, a student of Graham’s and a former employee of Graham’s investment partnership Graham-Newman – has elaborated on Graham’s principles in his own writings. His conclusion was that the evidence suggested that the practice of buying stocks when there was a material discount between the value and the price of a business was the reason for these investors’ success, and that this practice was likely to be successful in the future. Let’s examine the key principles of the value investing framework as described by Buffett in his writings and interviews, and...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.