Benjamin Graham is not only a great theorist, but also a successful practitioner

A man who became a legend among traders, renowned traders, and investors, he developed a definitive system for evaluating stock prices and, most importantly, their future price prospects.

Benjamin was born on May 8, 1894, in England. His first surname was Grossbaum, and the future investor had Jewish roots.

Although his family was fairly wealthy and intelligent, in 1895 his parents decided to move to the United States, a decision that proved fateful for Graham.

Unfortunately, his father died a few years later, worsening the family's financial situation. His mother had to raise other people's children, opening a private boarding school.

Benjamin himself was a fairly good student, which allowed him to earn a scholarship to Columbia University after high school, where he successfully completed his studies a few years later.

The twenty-year-old's first job was as an assistant at a brokerage firm in New York City, which he preferred to a professorship at Columbia University.

At first, his duties consisted of simply serving as a messenger and writing quotes on a price board, earning an annual salary of $580. But within a few years, the young man was trading independently on the exchange and earning a salary of $600,000 annually.

Quite a considerable sum considering that Ben was only 25 years old at the time and it was 1919.

The secret to a successful career was his excellent analytical and mathematical skills; it was no accident that Graham was invited to the university to teach mathematics.

Convinced of his strength and abilities, Benjamin, at age 32, decided to create his own investment fund; at the time, such companies were called partnerships.

The company thrived for decades, generating profits for its founder and surviving the 1929 financial crisis.

Alongside his investment work, Benjamin Graham taught finance at his alma mater, Columbia University, leading many future financiers to consider him their mentor.

He also wrote several books, one of which, "Security Analysis," is still considered the best guide for beginning investors. He has published numerous works devoted to analyzing a company's financial condition and estimating projected profits.

Benjamin Graham's Strategy

Benjamin Graham is a classic investor who prefers to invest in stocks rather than speculate in securities.

This principle underlies his approach to stock trading, which is based on a fundamental analysis of the company that has issued its shares to the market.

Moreover, the investor believes that when conducting analysis, one should pay attention not only to a company's assets and liabilities and the amount of dividends paid, but also to its management and the type of people in its top management.

, Warren Buffett uses similar principles in his investment strategy , surpassing his mentor and managing to accumulate a fortune of $85 billion.