Day November 22, 2007
It is a pleasure to be here this evening. I am under strict instructions from the rector of Grace Church, Brooklyn, not to let down the Episcopal side. Uphold the highest standards of the Episcopalian intellectual tradition, he told me. What that tradition might be, he couldn’t say, and neither can I. But I’ll do my level best.
My subject is Benjamin Graham: his life, his investment philosophy, his writings and his Jewishness. About his love life, I will say little, as my time this evening is limited—just three hours, I believe. Some years ago, Fortune Magazine, in a squib it published on the occasion of Graham’s induction into the U.S. Business Hall of Fame, said that the thrice-married father of value investing “leaped from blonde to blonde like an Alpine goat springing from peak to peak.”
I am a frankly worshipful admirer of Graham’s. I love him for his heart as much as for his head. Between 1929 and 1932, his investment partnership lost 70% of its value. Not until 1936 did it recoup all it relinquished since the Crash. Yet Graham persevered and, along with his partner, Jerry Newman, went on to achieve a brilliant long-term investment record—not excluding those three disastrous years. We have all heard the platitude, “The first rule of investing is not to lose money and the second rule is not to forget the first.” Very helpful. Well, Graham shows that a debilitating loss is no reason to give up. . . . Never quit.