Comments on: Benjamin Graham’s Three Principles of Value Investing

By: Writer's Coin

Writer's Coin — Sun, 29 Mar 2009 01:35:17 +0000

The Intelligent Investor should be required reading before anyone is allowed to buy a stock.

This would solve so many problems…

By: Sun

Sun — Fri, 27 Mar 2009 20:51:36 +0000

@Jay Thanks for sharing. Those two books are my favorites as well. Since now is kind of an extreme time, I am not sure if the result you got by using Graham’s criteria will be different if the screening were done at a different time under a more normal market condition.

@Matthew Yes, there some bad companies (but I somehow don’t think those you mentioned are particularly bad) in indices. Actually, the strategy of simple index investing is to own the entire stock market so you don’t have to pick and choose which index funds to buy. To do that, you only need to own four funds: a U.S. equity fund, a U.S. bond fund, a world (ex-US) equity fund and a world (again ex-US) bond fund.

By: Matthew

Matthew — Fri, 27 Mar 2009 19:13:17 +0000

I’m concerned about these index funds that mirror the major indexes. They contain tons of terrible companies (like Exxon, Monsanto, Nike, etc.) that are causing massive problems in the world. Why are we giving our money to corporations that are causing deaths, global warming, tainting the food supply, using child labor and unsafe labor practices in the developing world, etc.?

While I very much respect Benjamin Graham’s investing strategies, I think we need to find ways to follow his guidance without investing in these horrid companies.

By: Jay

Jay — Fri, 27 Mar 2009 16:36:15 +0000

great recommendations as those are two of the first books listed in our recommended reading lists for investors: http://www.marketfolly.com/2008/11/investing-trading-books-recommended.html

also, we recently went through and posted up a list of “what would benjamin graham buy today” and here’s what we came up with: http://www.marketfolly.com/2009/02/what-would-benjamin-graham-buy-today.html