| | | I agree that was one of the best Graham quotes of all time and one that I have found to be so true over the years.
On a related note, the AAII just had an article "Follow the Fed, but Be Smart About It" that small-caps tend to have middling (5.14% average annual returns) performance during times of restrictive monetary policy, while going gangbusters (28.39% average annual returns) during times of expansive monetary policy, which kind of reinforces my feeling to tread carefully with small caps here.
On the other hand, given the currency headwinds, I kinda think I prefer to be in companies that sell domestically, not internationally, which would be small caps over large caps for the most part. (And large caps like utilities that sell just here are overvalued IMO too due to thirst for yield.)
On another related note, Seeking Alpha has an article on Graham and the "Benjamin Graham Formula"
seekingalpha.com
I would love to continue any discussions on Graham because, even though he was a less successful investor than Buffet, I feel like his approach is easier to follow and more in tune with my approach ;)
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