Timeless Investment Classics, Part V: Where Are the Customers' Yachts?

Joseph L.

Joseph L. Shaefer submits: From March to December 2010, I am re-reading and reviewing one timeless investment classic that I own and refer to.

Joseph L. Shaefer submits: From March to December 2010, I am re-reading and reviewing one timeless investment classic that I keep and refer to on the bookshelf within arm’s reach of my desk.

Joseph L.

Joseph L. Shaefer submits: From March to December 2010, I am re-reading and reviewing one timeless investment classic that I own and refer to.

Greenbackd submits: The wonderful DShort.com blog has a post, Is the stock market cheap?, examining the S&P500 using Benjamin Graham’s P/E10 ratio. Doug Short describes the raison d’être of the Graham P/E10 ratio thus:

Joseph L. Shaefer submits: I am re-reading one investment classic published between 1841 and 1967 each month between now and December and writing a review for those who may have missed the greatest investment books ever written.

ValueHuntr submits:Careful readers of the conceptual framework in Benjamin Graham and David Dodd’s classic volume Security Analysis (1934) would argue that a stock’s return is ultimately dependent on fundamental traits of the business, such as its ability to generate earnings off its assets, and the extent to which the business can efficiently invest the earnings retained by the company.