Back To (Old) School

We hope you enjoyed your Labor Day weekend.

A while back, I was thumbing through my bookshelf copy of Graham & Dodd’s classic text, Security Analysis, first authored in the 1930’s.  Coincidentally, this was just before the recent Wall Street Journal article declaring the “Decline of the P/E Ratio,” among other articles that occasionally allude to their work.  Strangely, the two seem to be most readily acknowledged either in times when they’ve been dismissed as passé, out-of-step with cutting-edge quantitative techniques, or, conversely, their traditional and straightforward ways of looking at the world have been “rediscovered” by investors discouraged by complicated modern methods. Read more