Benjamin Graham Would Not Touch Amazon

Sun, 04/29/2012 - 09:51 EDT - Seeking Alpha

author name submits:As I considered the recent $31 gain in the price of Amazon (AMZN) stock, which sent shares spiraling upward almost 16% to $226, I got to thinking, "What would Benjamin Graham think about this?" So I went to my bookshelf, dusted off the copies of The Intelligent Investor and Security Analysis, and set out to find a couple of Benjamin Graham quotes that would be particularly applicable to Amazon's share price. I think I found three good ones, and they are all taken from "The New Speculation in Common Stocks" chapter in The Intelligent Investor (around page 563 onward) or Chapter 39 of Security Analysis titled "Price-Earnings Ratios for Common Stocks."Graham begins his commentary on speculative investments by remarking:

Let me start with a summary of my thesis. It comes from the attitude and viewpoint of the stock-buying public and their advisers-chiefly us security analysts. This attitude may beComplete Story »

Original article
Login or register to post comments

Benjamin Graham's 4 Commandments Of Defensive Dividend Investing
author name submits:Benjamin Graham's chapter titled "The Defensive Investor" in his classic work "The Intelligent Investor" provides much food for thought on conservative portfolio construction. Graham built his reputation by focusing on the "margin of safety" concept, and he flushed it out when he explained his four rules that should guide the investor's selection of common stocks.
A Compilation of Benjamin Graham's Papers on Common Sense Investing
Market Folly submits:Valuehuntr just posted an excellent compilation of papers by Benjamin Graham from 1930 to 1974.
February's Quick Picks For The Benjamin Graham Defensive Investor
ByClinton Holmes:Last month, I wrote an article highlighting 4 Quick Picks for the Benjamin Graham Defensive Investor. The article got a lot of positive feedback from the community, so I decided to start posting a monthly selection of stocks for the Benjamin Graham defensive investor along with a review of the previous selection's performance.
4 Quick Picks For The Benjamin Graham Defensive Investor
ByClinton Holmes:Warren Buffett, the second most wealthy individual in the U.S., has on many occasions accredited his success to Benjamin Graham's book, "The Intelligent Investor".
The Unintelligent Investment? Gauging Facebook's IPO Through The Lens Of Graham And Dodd
By CFA Institute: By David Larrabee, CFA
Benjamin Graham's Rules For The Common Stock Component: National Oilwell Varco
ByJarrod W. Jacinth:The fifth chapter of The Intelligent Investors is titled "The Defense Investor and Common Stocks". In this chapter Benjamin Graham lays the conservative foundation for picking defensive stocks. Mr. Graham suggests four rules to guide the investor to fill their portfolio.
Benjamin Graham's Rules For The Common Stock Component: Oracle
ByJarrod W. Jacinth:The fifth chapter of the Intelligent Investors is titled "The Defense Investor and Common Stocks". In this chapter Benjamin Graham lays the conservative foundation for picking defensive stocks. Mr. Graham suggests four rules to guide the investor to fill their portfolio.
Benjamin Graham's Rules For The Common Stock Component: The Walt Disney Company
ByJarrod W. Jacinth:The fifth chapter of The Intelligent Investor is titled "The Defense Investor and Common Stocks." In this chapter Benjamin Graham lays the conservative foundation for picking defensive stocks. Mr. Graham suggests four rules to guide the investor to fill their portfolio. I. There should be adequate though not excessive diversification. This might mean a minimum of ten different issues and a maximum of about thirty.
Benjamin Graham Defensive Investor Screen: How does it work?
In Brief A very demanding intrinsic value-based screen designed for less experienced investors and focused on “important” companies with long histories of profitable operations and strong financial condition. Background Benjamin Graham was the mentor of Warren Buffet and is considered the first proponent of value investing, along with David Dodd through various editions of their famous book Security Analysis. In 1947, Benjamin Graham published “The Intelligent Investor,” a book that outlined in detail his investment philosophy, and which is now considered an investment classic.
Invest Like Hedge Fund AltaRock: Treat Stocks as Ownership in a Business
Market Folly submits:We're pleased to present you with commentary from Mark Massey's hedge fund AltaRock. Since his money managing inception in 1989, Massey has outperformed the market with a compound annual growth rate of 11.1%. AltaRock is long-term oriented and the results serve as a perfect testament from investors with the same focus.

Main menu

Secondary menu

Benjamin Graham Would Not Touch Amazon

Related

Latest

User login

Our Blog

Markets Map

Follow Us

Secondary menu