Ben Graham: Learning From The Dean of Wall Street (Warren Buffett's Mentor)

Even the father of deep-value investing, Ben Graham, generated most of his career returns from one concentrated compounder (GEICO), not from net-nets.

• Net-net formula: Graham bought stocks at two-thirds or less of net current asset value (current assets minus all liabilities and preferred stock), likening it to paying $60 for a wallet with $100 cash plus a free business.
• Graham-Newman returns: The fund averaged ~20% gross annual returns from 1926-1956, though data quality from that era is imperfect; disciple Walter Schloss later matched similar returns for 50+ years.

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