The Power Of Growth Stocks According To Buffetts Mentor Benjamin Graham

Published: Oct. 7, 2015, 11:40 a.m.

b'with\\xa0Fred Martin, President & CIO, Disciplined Growth Investors and Author of Benjamin Graham and the Power of Growth Stocks: Lost Growth Stock Strategies from the Father of Value Investing



Fred Martin is a disciplined investor and an ardent disciple of Ben Graham. Martin founded Disciplined Growth Investors in 1997. As President and Chief Investment Officer, he oversees the operation of the firm and serves as an analyst, portfolio manager and head of the investment team. Fred has a very clear commitment to what his job is about and that\\u2019s making money for his clients.

As a portfolio manager, Fred has built his investment process on the strategies of the late Benjamin Graham \\u201cThe Father of Securities Analysis.\\u201d Fred has expanded on Graham\\u2019s strategy in his book which helps you rediscover the legendary investor\\u2019s forgotten growth-investing strategy through a cutting-edge approach to capturing profits in today\\u2019s volatile markets. Fred shares the investing approach that was founded on Graham\\u2019s long-lost valuation formula. And his method promises to let you accurately and confidently value growth-companies for a buy-and-hold strategy that mitigates risk and positions your portfolio for superior long-term returns.

Fred outlines three key steps to identify growth stocks, evaluate Margin of Safety, and make a call on whether to buy or simply stay on the sidelines and \\u201cadmire\\u201d a company that may be great but too richly valued to deliver a minimum \\u201churdle rate of return\\u201d. He also shares Graham\\u2019s simple but fairly accurate back-of-the-envelope calculation \\u2013 the Capitalization Model \\u2013 on valuing growth stocks. Fred also lets us in on what investors need, beyond data and valuation, to score a few big winners.

While mostly viewed as the guru of value investing, Graham openly admitted that his biggest winner - by a huge margin - were growth stocks. So what are growth stocks and how are they\\xa0different from value stocks?

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