- Benjamin Graham is the guy who wrote " THE INTELLIGENT INVESTOR " and who wrote taught Warren Buffett to become Warren Buffett.
- He is known as the father of " Value Investing"
- Value Investing is basically buying something cheap (an Rs. 100 stock for Rs. 50 ) & selling it when it reaches a worth value.
- In short, Ben Graham was a conservative, well-diversified investor who played it very safe with other people's and his own money.
- But, in 1948, he purchased around 50% of a growing insurance company called GEICO.
- He was so impressed by this opportunity that he broke his rule & invested around 25% of the assets he managed into this single stock.
- Graham's fund's $ 712,500 investment in GEICO turned to more than $400 million in 25 years, a 550 x bagger |
- Graham wouldn't have been known to us if he had failed in his big bet on GEICO.
- Luck sometimes plays a vital role in investing.
- Graham himself wrote about his GEICO'S lucky break:-
- " one lucky break, or one supremely shrewd, decision - can we tell them apart ?" not easily.
I hope you like and comment on your views
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