"I am no longer an advocate of elaborate techniques of security analysis in order to find superior value opportunities." - Benjamin Graham
A Conversation With Benjamin Graham
Even the legendary Benjamin Graham, heralded as the father of fundamental security analysis, reluctantly came to the conclusion that fundamental security analysis could no longer be counted on to produce superior investment returns. Shortly before he died in 1976, he was quoted in an interview in the Financial Analysts Journal as saying, "I am no longer an advocate of elaborate techniques of security analysis in order to find superior value opportunities. This was a rewarding activity, say, 40 years ago, when Graham and Dodd was first published; but the situation has changed… [Today] I doubt whether such extensive efforts will generate sufficiently superior selections to justify their cost… I’m on the side of the ‘efficient market’ school of thought."
That interview was conducted in 1976 and since then the world of investing and trading has totally changed with online brokerages and tons of news flowing at the rate measured in minutes if not in seconds.
Nowadays, we even have High-Frequency Trading
If Graham is still alive, what will he say today?
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