Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum > Business > Money, Finances, Stocks, Bonds, & Investments.

Money, Finances, Stocks, Bonds, & Investments. A discussion on Money, Finances, Stocks, Bonds, & Investments.

Ben Graham's three approaches to investing

Money, Finances, Stocks, Bonds, & Investments.

A discussion on Money, Finances, Stocks, Bonds, & Investments.
Thread Tools Search this Thread
Old 02-23-2011, 08:30 PM
Steve's Avatar
Steve Steve is offline
Join Date: May 2003
Posts: 38,073
Rep Power: 10
Steve has disabled reputation
Default Ben Graham's three approaches to investing

Benjamin Graham, who lived through and studied the stock market crash of 1929 developed three approaches to investing.

These three were labeled by him as the cross section approach, the anticipation approach, and the margin of safety approach.

The cross section approach is now seen as index investing. This cross section or indexing approach is all about having a diverse portfolio. To do this, an investor would purchase equal portions of 30 companies listed on the Dow Jones Index.

The anticipation approach was broken down into short term selectivity and growth stocks. With short term selectivity, the investor purchases stocks of companies that look to have the most favorable outlook in the next six months to year period.

Graham did not like this approach because he felt the value of an investment should not be based on what it can earn in a short period of time, but instead over a long period of time. Short term sales can be volatile and should not be used to base the value of an investment on.

The margin of safety approach was one that Graham subscribed to. To do this, Graham would analyze the history of a company. He would only purchase the stock if it was priced at less than 2/3 the value of the company's net current assets. He felt this discounted price would provide him with a margin of safety enough to protect him from an unexpected decline in revenue.
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator



Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Benjamin Graham's view on investing Steve Money, Finances, Stocks, Bonds, & Investments. 0 02-20-2011 08:49 PM
Investing JR- Franchise Building, Entrepreneurs, Business Leaders, & Innovators Discussions 8 03-23-2010 06:11 PM
Stock investing Steve General Business Discussions 6 11-20-2008 09:58 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Say Hello !!!
03-19-2007 11:18 AM
Yesterday 10:11 AM
by Steve
1,262 446,711
Been here for a while
01-29-2014 04:49 PM
10-12-2016 09:57 AM
by Steve
3 1,543
Any successful one man...
09-26-2016 06:04 AM
10-06-2016 05:07 PM
by WarriorLandscapingCAN
9 791
Is there a sticky about...
10-03-2016 06:08 PM
10-04-2016 09:50 AM
by Steve
1 200
What were your top...
09-13-2016 05:10 PM
09-30-2016 11:49 AM
by AKDave
6 2,384
Define Successful
Fireman Gus
05-10-2012 05:12 PM
09-30-2016 11:39 AM
by AKDave
12 5,848
A quick Intro
08-14-2016 05:17 PM
09-29-2016 12:53 AM
by myrlage
3 1,669
Enter to win Free...
09-25-2016 11:28 AM
09-26-2016 05:41 PM
by Steve
1 571
I have a new show!
09-19-2016 06:50 PM
09-23-2016 05:45 AM
by Chilehead
7 722
First commercial estimate
09-19-2016 12:42 PM
09-22-2016 05:42 PM
by acrajchel
7 753
» Popular Tags
annual apartment become an entrepreneur best mower be your own boss bidding business business education business help business management complex contractor hacks contracts convention converting customer dethatcher edging entrepreneur entrepreneur education estimate estimates fuel problems fuel pump half moon blade intro introduction jjandm lawncare landscape landscape design landscaping landscaping design company landscaping richmond va lawn lawncare lowering grade marketing mulch planting raising grade residential lawn care richmond va richmond virginia lawn care seasonal snowblower snow plowing snow shovel sprayer start a business start a lawn care business start business start up toro timecutter townhome tree tree service web design websites what to charge work from home z-max z-spray
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 07:28 AM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 07:28 AM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy