The Benjamin Graham Stock Investing Strategy

By Stock Research Pro • August 31st, 2009

The Stock Research Pro Software and SRP Valuation software are designed to provide value investors with the data and tools to conduct fundamental and value investing analysis of stocks, leveraging the formulas introduced by Benjamin Graham in his books and teaching. Both software packages guide the investor to the company financial statements and other data sources required to conduct analysis to determine the financial strength of a company and arrive at a stock’s “intrinsic” value.



About Benjamin Graham

Benjamin Graham (1894 – 1976) is considered by many to be the “father of value investing”. An American economist and professor, Graham introduced his value investing approach to his Columbia business school students in 1928 and co-authored several books describing this investment approach, through which he demonstrated a track record for strong, consistent returns while minimizing risk. The best known of these books included Security Analysis (1934) and The Intelligent Investor (1949). Warren Buffet is among the many disciples of Graham’s approach to stock investing.


What is Value Investing?

Value investing is about finding stocks that the market has not correctly priced, making them a good “value” to investors who ascertain this. The value investing style involves buying stocks that are trading below the intrinsic value of the stock that the value investor calculates through the fundamental analysis of the company. The value investor then looks to purchase with as great a “margin of safety” as possible- the difference between the intrinsic value and the current share price.

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The above information is educational and should not be interpreted as financial advice. For advice that is specific to your circumstances, you should consult a financial or tax advisor.

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