“They laid out a road map forinvesting that I have now beenfollowing for 57 years. There’s beenno reason to look for another.” ―Warren Buffett, on thewritings of Benjamin Graham Legendary investing author and philosopherBenjamin Graham lived throughinteresting times. Soon after his graduationfrom Columbia College, the nation enteredthe First World War. As the stock market fluctuatedin wild dips and peaks, the governmentseized control of the railroad industry, inflationand interest rates rose dramatically, andeconomic depression loomed on the horizon. During these events―and perhaps inspiredby them―Graham began writing articles for The Magazine of Wall Street , putting to paperhis earliest ideas on value investing and securityanalysis. For the first time, these important workshave been anthologized into a single volume. Benjamin Graham on Investing is a treasure troveof rare and out-of-print articles that documentthe early flashes of genius from a manwhose ideas and theories would revolutionizeinvestment philosophy and inspire the careersof such luminaries as Warren Buffett, SethKlarman, Charlie Munger, and countless othertop-tier investors. The early works of Benjamin Graham havenever been as relevant as they are today.The world’s markets are undergoing changeon a scale not unlike that of Graham’s era.David Darst, one of the world’s most respectedexperts on asset allocation, provides insightfulanalyses connecting Graham’s articles toevents today. ,i>Benjamin Graham on Investing is a timelessclassic that continues to have relevance morethan 30 years after the author’s death. Benjamin Graham was the author of many influential investment books, including the classic Security Analysis , now in its sixth edition. The first proponent of the value school of investing and founder and former president of the Graham-Newman corporation investment fund, Graham taught at Columbia University’s Graduate School of Business from 1927 through 1957. Rodney G. Klein is a Wall Street historian and former student of Benjamin Graham at UCLA. He founded the Klein Stock Market Museum & Library in Massillon, Ohio. David M. Darst, CFA , is a managing director of Morgan Stanley. He serves as Chairman of the Asset Allocation Committee and Chief Investment Strategist of the Global Wealth Management Group. Darst was the founding president of the Morgan Stanley Investment Group. Most famous for his investing classic Security Analysis , first published byMcGraw-Hill in 1934, Benjamin Graham wrote for The Magazine of WallStreet between 1917 and 1927. It was in these early articles that Graham began fleshingout what would eventually become some of the most influential investmenttheories in history. Now, for the first time, Graham’s early writings areavailable exclusively in a single volume. Benjamin Graham on Investing is a rare presentation of the legendary investor’s uniqueanalytical style and methods for determining a company’s true value. Writing fromthe last two years of World War I through the years leading up to the crash of 1929,Graham’s articles are not only indicative of the economic turbulence of the periodbut also serve as timeless pieces of wisdom for any investor. Edited and featuring a preface by Rodney G. Klein, a former student of the legendaryvalue investor, and with detailed commentary by asset allocation expert DavidM. Darst, this collection is a prized volume for any fan of Benjamin Graham. Benjamin Graham was the author of manyinfluential investment books, including theclassic Security Analysis , now in its sixth edition.The first proponent of the value schoolof investing and founder and former presidentof the Graham-Newman corporation investmentfund, Graham taught at ColumbiaUniversity’s Graduate School of Business from1927 through 1957. Rodney G. Klein is aWall Street historian and former student ofBenjamin Graham at UCLA. He founded theKlein Stock Market Museum & Library inMassillon, Ohio. David M. Darst, CFA , is amanaging director of Morgan Stanley. Heserves as Chairman of the Asset AllocationCommittee and Chief Investment Strategistof the Global Wealth Management Group.Darst was the founding president of theMorgan Stanley Investment Group. Rodney G. Klein is aWall Street historian and former student ofBenjamin Graham at UCLA. He founded theKlein Stock Market Museum & Library inMassillon, Ohio. BENJAMIN GRAHAM on INVESTING The McGraw-Hill Companies, Inc. Copyright © 2009 The McGraw-Hill Companies All right reserved. ISBN: 978-0-07-162142-7 Contents Chapter One CURIOSITIES OF THE BOND LIST Issues That Sell on Illogical Bases— Misconceptions of Investors— Some Foreign Issue Anomalies The test of the market, like that of Barrie's policeman, is popularly supposed to be "infallible." Economists picture a thousand buyers and sellers congregating in the market place to match their keen wits and finally evolve the correct price for each commodity. In the securities ma