Benjamin Graham and the Power of Growth Stocks: Lost Growth Stock Strategies from the Father of Value Investing Hardcover – Nov 14 2011
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From the Back Cover
Benjamin Graham is the father of value investing, but his greatest investment success came from one growth stock that increased his net worth more than all his other investments combined. Benjamin Graham and the Power of Growth Stocks helps you rediscover the legendary economist’s forgotten growth-investing strategy through a cutting-edge approach to capturing profits in today’s volatile markets.
Inside, leading investment manager Fred Martin shares the investing approach that was founded on Graham’s long-lost valuation formula. Martin’s method lets you accurately and confidently value growth companies for a buy-and-hold strategy that mitigates risk and positions your portfolio for superior long-term returns. Benjamin Graham and the Power of Growth Stocks puts everything you need at your fingertips, including:
- Effective guidance and techniques for zeroing in on the critical factors of making good investment decisions
- The three key rules for creating a margin of safety when investing in growth companies
- Tips for identifying the hidden “barriers” and “handcuffs” that signal doom for a company’s growth
- Insightful best practices and pitfalls to avoid from the author’s personal experience
- Graham’s most useful and straightforward treatise on growth-stock investing―in its entirety―for the first time since 1962
If you want your wealth to serve you―not your broker and mutual funds―start acquiring the dream-team companies for your portfolio today withBenjamin Graham and the Power of Growth Stocks.
About the Author
Frederick K. Martin is the president and chief investment officer of Disciplined Growth Investors, which currently manages more than $2.5 billion of assets for institutions and individuals.
Inside This Book(Learn More)
Top Customer Reviews
Most Helpful Customer Reviews on Amazon.com (beta)
Most investors by now are well familiar with the tenets of Benjamin Graham and his many disciples, which include a few pretty good investors, like Warren Buffet to name one. This book is particularly interesting because it revisits the investing philosophy of Mr. Graham with an angle toward using (I hesitate to say "specializing in") growth stocks. It then expounds on the most tangent of Mr. Graham's principles, and expands them in light of the modern investment environment. But what really makes this book a winner for me is the fact that it proposes and explains a tangible, executable formula and method for actually calculating the value of a growth stock and whether or not it is one that should be invested in. Too often we hear some investment advisor tell us, "This formula works, unless of course it doesn't". There is none of that here. You set the margin of safety where you are comfortable. You set the growth rate (called "hurdle rate" here) you need (or want) to achieve. You look up or calculate the values for the company you want to invest in. Then you apply Graham's formula. If the numbers match, great! You've found your stock. If they don't, you have to keep looking or change your expectations. The choices are always up to you. For a disciplined investor, I think this methodology is ideal. By constantly referring to Graham's teachings, the author has really reached an investment threshold that is understandable, achievable, and repeatable. The writing is crisp and friendly, and the style is homey without being corny or preachy. Above all, the author has a solid understanding of the investment principles of Ben Graham, and he has the experience of using them, and succeeding with them, over a statistically significant period of time. Without a doubt, Ben Graham's growth stock approach is sensible, making this book probably the best investment book I've read this year. I can only give it the highest possible marks.
Picking good companies to invest in can be arduous, but this book can simplify the process by showing you how to use Graham's formula to calculate the ones to eliminate and the ones to buy with a Margin of Safety. In fact, I believe that Ben himself would be proud of the methodologies laid out in this book.
I recommend "Benjamin Graham and the Power of Growth Stocks" to any individual or professional investor with long-term investment goals. You will walk away with a better understanding of Mr. Market and how to invest for the long term.
As became apparent during that meeting, they understood that growth stock investing does not mean neglecting valuation, quite the contrary, it makes them very disciplined. In this book Fred reveals which key criteria a company must meet to be considered for investing, while also revealing his valuation framework, using a formula first published by Graham in 1962.
Worth a read for the serious investor who can spend hours a week analyzing companies/stocks - as such it is probably especially worthwhile for his asset management peers.