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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: paulelgin who wrote (48572)	7/3/2012 3:14:43 PM
From: Spekulatius	1 Recommendation Respond to of 78748

>>Graham-Newman Corp. followed these guidelines very profitably (of course, Graham also had a huge position in GEICO - a 1/4 stake in the company - that he purchased in the forties, I believe).<< This is correct but it should be noted that Warren Buffet by far outperformed Graham Newman, using first an activist approach and later by purchasing quality companies and decent and sometimes great prices. I think Graham Newman only outperformed the market by a few % points annually. WEB absolutely trounced the market in his early days. the Graham Newman mousetrap was good but other mousetraps from Graham Doddsvile followers worked even better imo. FWIW, i do think that the Graham approach is too restrictive - the fact that Graham was the first does not mean, he is/was the best. My opinion from this is that we should absolutely feel free to tweak the Graham approach and I think it will work, as long as the tweaks are rational and based on rational value based criteria.