Go!
Over one tumultuous 30-year stretch that included the Great Depression, the Dow Jones Industrials Average returned only +224%. But Benjamin Graham, the father of value investing and Warren Buffett's mentor, handily beat the overall market and scored what total return for his clients during that period?

A.)  554%
B.)  789%
C.)  1,439%
D.)  4,659%
E.)  11,006% 
Published: May 12, 2008

The correct answer is      (E.)  11,006%

That's right -- according to Brandes Investment Partners, Ben Graham's clients earned more than +11,000%, or annualized returns of +17%, during an extremely difficult 30-year span that saw the Dow return only about +4% annually.

How did he do it? By being objective. Rather than try to predict where share prices are headed in the short-term, he believed it was far more productive to calculate a firm's intrinsic value, and then only invest in those trading for significantly less than what they're worth.

While this makes perfect sense to most investors, the reality is that many people do not move past the theory and apply these principles. One investor who has is Warren Buffett. Well-known by most investors, many may not realize that Buffett honed his craft under Graham's tutelage and still applies many of the same principles today.

And Nathan Slaughter, editor of StreetAuthority's value-investing newsletter Half-Priced Stocks, has studied both Graham and Buffett for years and applies their principles to the ideas he brings readers every month. In a recent issue of his newsletter, Nathan pinpointed eight companies that passed many of the very hurdles Ben Graham demanded in an investment. These value picks include one company that has the potential to rise nearly +100% before it reaches the neighborhood of its fair value. To learn the names of these stocks, and to learn more about the Half-Priced Stocks newsletter, please visit this link.

Want to answer more trivia questions? Visit our archives here!



The Hidden "Wholesale" Market Where Gold Sells for $387/oz
Traditionally this type of gold investment sells at a lofty premium to gold bullion. But right now it's on sale for -67% cheaper. Market distortions like this never last. When this gold investment snaps back in line with bullion, owners could make a lot of money in a hurry. Details here.
 
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