By Jody Chudley The distinction between value and growth stocks dates a long way back…
Benjamin Graham, known as the father of value investing, lost a bundle in the stock market crash of 1929. To prevent a repeat episode, he made it a personal rule to buy only stocks that were dirt cheap relative to their fundamentals.
He focused on companies trading at low valuations relative to their net asset value, earnings and cash flow. Graham didn’t try to buy great companies – he tried to buy stocks valued so cheaply that they couldn’t go any lower.
His approach worked well…
He bought at cheap valuations and …read more
