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!



Stephen Leeb's Market Forecast
Receive a free ongoing, PhD level Wall Street education in how the markets work so that you can see into the future and position yourself accordingly.

The Daily Reckoning
The Daily Reckoning offers a "uniquely refreshing" perspective on the global economy, investments, and the ability to live well in uncertain times.


GFT forex
FREE Introductory Forex Trading Guide -- Contains everything a beginner currency trader needs to know, before entering the fast-paced forex market.

Success Trading
Our Success Trading Group scored 52 Wins in 52 Weeks - 365 Days Without A Loss!

FREE weekly newsletter contains actionable investment ideas from today's leading market analysts.

Special Offers

Makes more sense in one email than a month of CNBC
Learn More

3 Penny Stocks
Poised to Soar 300%
Learn More


Meet the Experts    Email Newsletters    Special Offers    Email Preferences    FAQ
About Us    Advertise    Links    Privacy    Disclaimer    Help

 

(c) Copyright 2001-2008 TopStockAnalysts.com -- All Rights Reserved