Warren Buffett’s mentor Benjamin Graham- Master of value investing; followers’ success stories
时间:2024-06-26 08:35:40 阅读(143)
In the world of investing, few names command as much respect and admiration as Benjamin Graham – mentor to none other than Warren Buffett. Often referred to as the “father of value investing,” Ben Graham’s investment philosophy has stood the test of time and continues to influence generations of influential investors including Warren Buffett, Seth Klarman, Walter Schloss, Joel Greenblatt, and others. With a keen eye for undervalued securities and a focus on fundamental analysis, Ben Graham’s approach has yielded impressive results.The Concept of Value Investing
At its core, value investing involves identifying stocks that are trading below their intrinsic value. Graham believed that the market is often driven by irrational and emotional factors, leading to temporary mispricings of stocks. Value investors, therefore, seek to take advantage of these mispricings by purchasing stocks at a discount, with the expectation that their true worth will eventually be recognised.
Warren Buffett: Graham’s most famous disciple Warren Buffett has masterfully applied his mentor’s principles. Through his company Berkshire Hathaway, Buffett has built a legendary investment portfolio, focusing on companies with solid fundamentals and competitive advantages. Classic examples include his investments in Coca-Cola, American Express, and Wells Fargo.
Seth Klarman: Known for his meticulous approach to investing, Seth Klarman has consistently employed Graham’s value investing techniques. He has achieved remarkable success with his hedge fund, The Baupost Group. Klarman’s notable investments include positions in distressed assets, such as Lehman Brothers during the financial crisis, and undervalued companies like Cheniere Energy.
Walter Schloss: Another Graham disciple, Walter Schloss, applied a straightforward and disciplined approach to value investing. Schloss achieved impressive long-term returns by investing in undervalued stocks with low price-to-book ratios. His successful investments included McDonald’s and Coca-Cola.
Joel Greenblatt: Known for his book “The Little Book That Beats the Market,” Greenblatt incorporated Graham’s principles into his investment strategy. He developed the “Magic Formula,” which combines measures of a company’s earnings yield and return on capital to identify attractive investment opportunities. Notable successes include his investments in companies like Graham Holdings and General Motors.
Benjamin Graham’s philosophy of value investing has not only produced remarkable returns for investors but has also fostered a disciplined and rational approach to the stock market. By focusing on fundamental analysis and seeking undervalued opportunities, value investors can potentially capitalize on market inefficiencies and achieve long-term success.
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- d that milk prices are unlikely to witness spikes in the coming months due to cooler temperature in April and parts of May, which has delayed the onset of ‘lean’ season, when milk production usually drops.
Retail inflation in milk was reported at 8.85% in May 2023. The milk inflation has remained elevated at over 6% since August 2022. Despite India being the largest milk producer since 1998, the commodity has been the second biggest factor after cereals such as rice and wheat in driving up retail inflation in the last fiscal.
Milk has the second highest weight in the food and beverages basket of the consumer price index at 6.61%, a notch lower than cereals and products with a 9.67% weight. Organised players, including Mother Dairy and Amul, hiked prices multiple times in the last one year citing higher fodder cost, robust demand and some impact due to reports of lumpy skin disease.
Industry sources said feed cost, which has a share of more than 65% in the cost of production of milk, has increased to Rs 20/kg from Rs 8 a year ago. The finance ministry in April had attributed the elevated milk inflation to a demand supply mismatch and said it could be one of the factors apart from volatile international crude oil prices and constrained supplies of milk would influence the country’s inflation trajectory.
“Milk production has been impacted by a lumpy skin disease infecting millions of cattle in late 2022,” the ministry said in the monthly economic review, adding that the vaccination drive against the disease is expected to curb the spread and immune the cattle against the skin disease.
According to official data, currently India is the world’s largest milk producer, and has a share of 23% in global milk production. For the first time in decades, the country’s milk production is likely to have stagnated in 2022-23 due to Lumpy Skin Disease in cattle across several states and the lagged effect of Covid-19 in the form of stunting of the animals, a senior official with department of animal husbandry and dairying recently had stated. The milk production was estimated at 221 million tonne in 2021-22.
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