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Benjamin Graham- Value Investing ROCKS!!! December 17, 2011

Well Well Well, before you ask me who is this guy I am writing about, let me make one thing clear and that is :

This guy is first pragmatic real investor of sophisticated WALL STREET. Guy was looked up to by none other than Warren Buffett. And this I think is sufficient for all those who are even remotely interested in financial markets.

I was first introduced to this name by a dear friend of mine. Till that day I was as ignorant about markets as anyone else. Name didn’t ring any bells until I was told that Warren Buffett was inspired and guided by this fellow. I was intrigued by this fact and so my fascination began actually to explore what this man has to offer to someone like me, who is almost nine decades junior to him.

First book that I came across was Security Analysis by Mr.Graham. The sheer size of the book made sure that I take it when i was really ready for it technically and psychologically. Value Investing was the next book I saw, and was impressed by the it’s brief. So got a copy for myself n started reading it. As I went on reading this book I realized that every investor ( by investor I mean anyone who is part of markets directly by owning shares or indirectly  via mutual funds, insurance ULIPS, Pension funds, etc. which practically means almost any decently legitimate earning individual) should and MUST read this classic book on investing.

It deals with market psychology and the way investor should discipline himself while investing throughout his investment lifetime. Proper homework, patience and owning responsibility of decisions one makes are the most basic building blocks of a satisfying investment adventure. The language is simple and lucid, helping a layman to grasp the points easily.

I fail to understand why on earth do the experts don’t ever propagate what Graham has said. If they really would have done their jobs well as financial consultants, I am very sure that severity of so many market crashes would have been exponentially reduced. Exponentially reduced because if the experts would have just looked at the past and refrained themselves from repeating the same mistakes, the losses in markets would have been lot lesser.

Entire book is kinda of a same story being told over and over again in a different perspective every time. Allowing us to absorb the essence of lessons we should remind ourselves while actively investing for ourselves. This book is kind of a Bible for  any investor who is serious enough to take efforts for making sure that his/her money works for it’s master.

After all markets are full of contradictions. Exactly going opposite of common sense all the time just reflecting the same recourse in our daily lives as far as investment is concerned. Most of us work hard to earn money but are equally lazy when it comes to take effort to make it work for ourselves. I don’t blame markets for taking most of us for a RIDE. We deserve the punishment for our ineptness towards our own financial growth.

Graham would smile every time anyone follows his advice and earns respectable returns on his investments. After all he knows very well that you have EARNED for your efforts and surely would be safe in turbulent markets.

May God bless Him for sharing so simple yet profound insights to make our lives better!!!