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Benjamin Graham's Decision framework

Overview

Known as the father of value investing and Warren Buffett's teacher.

Style

Margin of safety, net-net stocks, investor psychology

Firm

Graham-Newman Partnership

Period

1894-1976

Benjamin Graham

Decision framework

A practical checklist for turning philosophy into action.

Beginner decision framework

When studying Benjamin Graham, convert the style into a clear process before using real capital. A process keeps decisions from being driven only by news or emotion.

Do I understand this asset or business?

What is the main edge or thesis?

What would prove me wrong?

If wrong, how much can I lose and can I recover?

Does this decision fit my time horizon and temperament?