| | | An elderly aunt, 95, whom I care for despite an 80 mile distance between us, is a CPA and former name partner in a very large regional accounting firm. Visited her yesterday, receiving a gift I shall cherish forever, her second edition of Graham and Dodd’s Security Analysis that she used as a student. She paid $4.00 for it, it is now worth between $300 and $600, not that I will ever sell it.
It is of course the Bible for value investors. Buffett has used its principles rigorously, making a fortune.
Began reading it last night. It is compelling.
Bitcoin cannot be analyzed through the G & D framework.
Is the framework obsolete?
Buffett:
Adding many converts to the value approach will perforce narrow the spreads between price and value. I can only tell you that the secret has been out for 50 years, ever since Ben Graham and Dave Dodd wrote Security Analysis,yet I have seen no trend toward value investing in the 35 years I've practiced it. There seems to be some perverse human characteristic that likes to make easy things difficult. The academic world, if anything, has actually backed away from the teaching of value investing over the last 30 years. It's likely to continue that way. Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace, and those who read their Graham & Dodd will continue to prosper." [5] |
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