InvestorQ : Why Graham is called the father of Investing?
Mary Joseph made post

Why Graham is called the father of Investing?

Answer
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Ira Shah answered.
1 year ago


What is Value Investing?

Value investing is an investment strategy that involves picking up stocks that appear to be trading for less than their intrinsic or book value. Value investors actively lookout for stocks they think the stock market is underestimating. They believe the market overreacts to good and bad news, resulting in stock price movements that do not correspond to a company’s long-term fundamentals. The overreaction offers an opportunity to profit by buying stocks at discounted prices- on sale.
Benjamin Graham is known as “the father of value investing”, also “Dean of wall street”.

What made him Father of Value Investing?

Graham (1894-1976) was great at making for himself and his clients, without taking any big risks. He created and taught many principles of investing safely and successfully, that is used by modern investors till today.
Graham was a famous author, amongst which the ones that received great appreciation were – “Security Analysis” (1934) and “The Intelligent Investor” (1949). He was one of the first to solely use financial analysis to successfully invest in stocks. He also helped in drafting many elements of the Securities Act of 1933, also known as “The truth in Securities Act”.
All of this made Graham’s work more efficient and financial analysis easier, and this new pattern was a huge success.