GLEN ARNOLD INVESTMENTS
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Did you ever wonder how Benjamin Graham come up with value investing?

6/4/2020

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Benjamin Graham, Warren Buffett's mentor ran a fund with assets under management of £2.5m in 1929. The crash wiped out most of that.  In the Depression he pondered the meaning of "investing" as opposed to "speculation" and wrote the very influential Security Analysis book. Warren Buffett became his student in 1950. After regaining his investors' money, between 1936 and 1956 Graham achieved average annual returns of 20%.

 
A sound investment operation means you (a) conduct thorough analysis of the company (b) aim only for a satisfactory rate of return (c) always build in a margin of safety. If any of those factors are missing you are not investing but speculating (e.g. buying on tips or inside information ignoring analysis, trying to guess short term market moves).

He realised he had been speculating prior to the Crash. The searing experience of the Crash led to the foundational value investing philosophy he developed in the 1930s.
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    Glen Arnold

    I'm a full-time investor running my portfolio. I invest other people's money into the same shares I hold under the Managed Portfolio Service at Henry Spain. Each of my client's individual accounts is invested in roughly the same proportions as my "Model Portfolio" for which we charge 1.2% + VAT per year. If you would like to join us contact [email protected]

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In the short-run, the market is a voting machine – reflecting a voter-registration test that requires only money, not intelligence or emotional stability – but in the long-run, the market is a weighing machine.  Benjamin Graham




  • About
  • Henry Spain
  • Books
    • My Books
    • Other Books
  • Blog
  • Portfolio
    • Buffett-style
    • Modified price earnings ratio
    • Net Current Asset Value
  • Resources
    • glossary of investment terms >
      • A - B
      • C
      • D - E
      • F - G
      • H - I - J - K
      • L - M - N
      • O - P
      • Q - R
      • S
      • T - U - V - W - Y - Z
    • TOP 10 TIPS FOR INVESTORS