On Ben Graham and Bank Stocks
On Ben Graham and Bank Stocks
(via www.gannononinvesting.com)
Geoff Gannon writes a post on Ben Graham and Bank Stocks in response to Jason Zweig's most recent column: "Jason Zweig writes the Intelligent Investor column for The Wall Street Journal. I’m sorry to say this week’s column is especially unintelligent."
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good post. Something to note is that Ben Graham actually did invest in real estate type investments in the depression by buying bonds that were secured by NYC real estate-he was paying roughly 30 cents on the dollar for 1000 dollar bonds with a yield of 6%. Apparently, Chase Manhattan would loan you 25 cents on the dollar for them at the time-so your real outlay was 50 bucks for a 1000 dollar bond...
This info came from P228 of "Value Investing: From Graham to Buffett and Beyond."
awesome post
Love the post Gannon! I was especially intrigued by the arbitrage idea. If one can make 20% annually by being and arbitrageur that would be pretty cool.. The only issue with that is that you won't be able to compund your profits over time since the size of the deals which you take from a value approach could fluctuate greatly over time..