And then read (original co-author) Graham's last published interview ("A Conversation with Benjamin Graham", Financial Analysts Journal, September/October 1976):
> In selecting the common stock portfolio, do you advise careful study of and selectivity among different issues?
> In general, no. I am no longer an advocate of elaborate techniques of security analysis in order to find superior value opportunities. This was a rewarding activity, say, 40 years ago, when our textbook "Graham and Dodd" was first published; but the situation has changed a great deal since then. In the old days any well-trained security analyst could do a good professional job of selecting undervalued issues through detailed studies; but in the light of the enormous amount of research now being carried on, I doubt whether in most cases such extensive efforts will generate sufficiently superior selections to justify their cost. To that very limited extent I'm on the side of the "efficient market" school of thought now generally accepted by the professors.
There is probably even more "enormous amount of research" going in the decades since he said those words. Hedge funds are using satellite imagery to get an information edge:
What are you, as an individual investor, doing to get an edge over other market participants?
With a much smaller portfolio it is a lot easier to be more nimble, but you're going to spend hours researching things. If you find that enjoyable, go nuts; but for most folks the market returns of index funds will probably allow them to meet their financial goals (e.g., retirement nest egg), and so IMHO the time is probably better spent with family and friends.
And then read (original co-author) Graham's last published interview ("A Conversation with Benjamin Graham", Financial Analysts Journal, September/October 1976):
> In selecting the common stock portfolio, do you advise careful study of and selectivity among different issues?
> In general, no. I am no longer an advocate of elaborate techniques of security analysis in order to find superior value opportunities. This was a rewarding activity, say, 40 years ago, when our textbook "Graham and Dodd" was first published; but the situation has changed a great deal since then. In the old days any well-trained security analyst could do a good professional job of selecting undervalued issues through detailed studies; but in the light of the enormous amount of research now being carried on, I doubt whether in most cases such extensive efforts will generate sufficiently superior selections to justify their cost. To that very limited extent I'm on the side of the "efficient market" school of thought now generally accepted by the professors.
* http://www.grahamanddoddsville.net/wordpress/Files/Gurus/Ben...
There is probably even more "enormous amount of research" going in the decades since he said those words. Hedge funds are using satellite imagery to get an information edge:
* https://newsroom.haas.berkeley.edu/how-hedge-funds-use-satel...
* https://www.theatlantic.com/magazine/archive/2019/05/stock-v...
What are you, as an individual investor, doing to get an edge over other market participants?
With a much smaller portfolio it is a lot easier to be more nimble, but you're going to spend hours researching things. If you find that enjoyable, go nuts; but for most folks the market returns of index funds will probably allow them to meet their financial goals (e.g., retirement nest egg), and so IMHO the time is probably better spent with family and friends.