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

To: Paul Senior who wrote (3297)	2/24/1998 1:52:00 AM
From: porcupine --''''>	Read Replies (1) \| Respond to of 78486

From a draft of "Graham and Doddsville Revisited" [the Book]: But, Graham is not saying [in "The Intelligent Investor"}, in our reading of his work, that per share book value is the one and only measure of intrinsic value in any and all markets and economic conditions. As Graham states in the Introduction, "The underlying principles of sound investment [i.e., rationally quantify value; buy or sell accordingly] should not alter from decade to decade, but the application of these principles must be adapted to significant changes in the financial mechanisms and climate." Supporting this interpretation are Graham's words in the Introduction's opening paragraph, "Comparatively little will be said here about the technique of analyzing securities; attention will be paid chiefly to investment principles and investors' attitudes." If Graham thought that book value is the single timeless measure of valuation, it is unlikely that he would begin his most widely read book on investing by writing that "Comparatively little will be said about [any one valuation technique]".