Don’t lose money and play the long game
“Every day, do something foolish, something creative, and something generous.” Those are the words of Benjamin Graham and, according to his most famous student — Warren Buffett — “he excelled most at the last.”
Benjamin Graham is the “father” of value investing, a long-term, contrarian approach to managing money. From 1936 to 1956, Graham’s company achieved a stellar 20% annual return for its investors. If you had invested $10,000 with him over those 20 years, you’d have walked out with $383,375.99 — or about $3.6 million in today’s dollars.
Graham is also one of the main reasons why, today, companies pay dividends to their shareholders.
In 1926, companies first had to file public financial reports. Graham analyzed those of Northern Pipeline, an oil company owned by John D. Rockefeller, and found they had $95 per share in extra cash that they weren’t using. Graham rallied shareholders together and, two years later, received a board seat and $70 per share — along with everyone else. Rockefeller supported his motion and pushed other companies to do the same — which they still do today.
When Warren Buffett first approached Graham in 1951, he offered to work him for free — to which…
