How Benjamin Graham would invest on the ASX

There are many famous fathers.

Hippocrates is the father of modern medicine, James Brown is the father of Soul, and Darth Vader is the father of Luke Skywalker.

But there is only one father of value investing, and that's none other than Benjamin Graham.

Graham, along with the oft-overlooked David Dodd, wrote the classic book on investing: The Intelligent Investor. It’s a staple for anyone who is serious about investing in general, and value investing in particular.

The central idea of the book is to approach investing with a long-term focus and to view stocks as ownership in a business, rather than mere pieces of paper to be traded.

The text also thoroughly covers the importance of in-depth analysis, risk management, and one of the most enduring principles – a margin of safety.

A margin of safety refers to buying a stock at a price below its intrinsic value, so as to provide protection against market gyrations.

So, how would the principles laid out The Intelligent Investor stack up today on the ASX?

To answer that question, Livewire's Ally Selby was joined by Forager Funds Management’s Steve Johnson and Tyndall Asset Management’s Jason Kim. 

 

Note: This episode was filmed on Wednesday 15 November 2023. You can read an edited transcript below. 

https://www.livewiremarkets.com/wires/how-benjamin-graham-would-invest-on-the-asx/