9/ His checklist before buying: 1. Earnings yield > twice AAA bond yield. 2. P/E ratio < 40% of its 5-year high. 3. Price < 2/3 tangible book value. 4. Total debt < book value. 5. Steady earnings growth over 10 years. These rules minimized risk and maximized returns.

In 1929, Benjamin Graham lost almost everything in the market crash. Then he developed a formula so powerful, Warren Buffett called him “the smartest man I ever met.” Here’s Benjamin Graham’s timeless formula for building generational wealth:

1/ Early hardships shaped his resilience. - Born in London, 1894. - Moved to New York, faced financial struggles after his father’s death. - By age 9, he worked odd jobs to support his family. But these challenges sparked his hunger for financial mastery.

2/ At 13, he had his first taste of investing. His widowed mother bought US Steel stock in 1907. The market tanked, and the family lost nearly 50%. It was a painful lesson in volatility—but Graham would later turn this knowledge into his greatest strength.

3/ College life wasn’t easy either. Graham was accepted to Columbia University after a test mix-up. Barely scraped through with swimming lessons (a graduation requirement). But hard work paid off—he graduated in 1914 and soon landed a $12-a-week job on Wall Street.

4/ By 1920, Graham had become a junior partner. His reputation for deep analysis and innovative strategies grew. He was fearless with arbitrage and hedging deals. This led to the formation of his first fund: Grahar Corporation in 1923 with $500,000 in capital.

5/ But Graham wasn’t just about theory; he practiced what he preached. He invested heavily in four key areas: - Arbitrages: Exploiting price mismatches. - Bargain Issues: Undervalued stocks with strong fundamentals. - Liquidations: Companies dissolving their assets. - Related Hedges: Pricing discrepancies between related securities.

6/ The strategy worked wonders. By 1928, his investments outperformed the Dow Jones by 9%. But the 1929 crash wiped out most of his gains, teaching him a critical lesson: Always maintain a margin of safety.

7/ The Great Depression didn’t stop him. In 1934, he published Security Analysis, the cornerstone of value investing. This book taught generations to focus on: - Intrinsic value - Margin of safety - Long-term strategies

8/ Graham’s formula for success: He devised a formula to calculate intrinsic value: V = EPS × (8.5 + 2G) Where: - V = Intrinsic value - EPS = Earnings per share - G = Growth rate Simple but powerful for identifying undervalued stocks.

10/ His biggest success? GEICO. In 1948, Graham invested heavily, buying 50% of the company. That one decision led to returns of over 200x his investment. Thus, even cautious investors sometimes bet big on clear opportunities.

11/ By 1953, Graham achieved millionaire status (equivalent to ~$11.3M today). He credited his success to: - Continuous learning - Margin of safety - A disciplined, data-driven approach to investing.

12/ Lessons from Benjamin Graham: - Buy below intrinsic value. - Treat markets as emotional, not rational. - Always keep a margin of safety. - Focus on long-term value, not short-term noise. Investing isn’t gambling—it’s a calculated game of patience.

Graham’s legacy lives on through Warren Buffett and countless others. His teachings remain the foundation of value investing today. If you want to master the market, start with the principles he outlined nearly a century ago.

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I don't agree with following points- • Price < 2/3 tangible book value • Total debt < book value. While they made sense 70 years earlier, you won't be able to find decent companies trading below their "book value" in the market. Follow me for more insights🫡

Seen any of those stocks lately? Nvda/ aapl?