Image Credit: Ben Graham in Sevilla, Spain, October 1964 (photo: courtesy Benjamin Graham, Jr.)
By Jason Zweig | May 10, 2019 11:00 a.m. ET
Benjamin Graham, the father of value investing, would have been 125 years old this week. The idea he fostered—buy cheap stocks and hold them for superior long-term returns—is looking geriatric, too..
Faster-growing, higher-priced stocks have outperformed by such huge margins recently that the long-run advantage of value stocks has withered away. Will that last? Probably not. Was Graham wrong? Almost certainly not. But value investors shouldn’t try to hide how dark the evidence looks—and they should ponder whether the world has changed.
Graham, Warren Buffett’s teacher and one of the greatest investors of the past century, had three profound insights.…
To read the rest of the column:
Benjamin Graham, The Intelligent Investor
Jason Zweig, The Devil’s Financial Dictionary
Jason Zweig, Your Money and Your Brain
Articles and other resources:
William J. Bernstein, “Who Killed Value?” EfficientFrontier.com
Cliff Asness et al., “Fact, Fiction and Value Investing,” AQR.com