Benjamin Graham is often called the grandfather of investing and founder of value investing. In a sense, most of the strategies on Stock Mixology fundamentally derive from his teachings. He refused to overpay for assets and this mindset has earned him a place in investing hall of fame.
After graduating from Columbia University at 20 years of age in 1914, Graham would go on to work on Wall Street for some time and founded the Graham-Newman Partnership. There, he even employed his former student, Warren Buffett, in his investing firm. Benjamin Graham was so influential on Warren Buffett, that Buffett calls Graham the “second most influential man in his life, after his father”. Besides Buffett, Graham also had other investing disciples such as Irving Kahn and Sir John Templeton.
Graham would go on to write two of the most influential investing books of all time- Security Analysis and The Intelligent Investor. These have been paraded by investors of multiple generations and despite being written decades ago, their principles remain true to this day. In these books, Graham advocates for companies with high Earnings Yields, low Price-to-Book ratios, high Current Ratio, low debt, and more criteria. There is one particular trading set up though that would particularly catch his eye when the opportunities would come around. That brings us to the Net-Net.
