Benjamin Graham is considered to be the Godfather of value investing. He essentially pioneered the idea of valuing businesses based on their profitability and the value of their assets.
While other investors had been using this approach for some time, Graham popularized it through his two books, Security Analysis, and the Intelligent Investor.
Investing vs. Speculation
It might seem strange today, but back in the early 1900s, investing was incredibly speculative.
A preserve of the rich, investors tended to buy stocks based not on fundamental analysis but on stock tips. Fundamental analysis was relatively rare. Instead, investors concentrated on metrics such as a stock's dividend yield.
Most portfolios avoided common stocks altogether, concentrating instead on preference shares and blue-chip...
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