Sex in Brussels25 May 2020
Ben Graham had become famous during the 1920’s. At a time when the world was coming to the field of investment as a giant game of roulette, found the actions were so cheap that they were almost completely devoid of risk. One of their calls are known North pipe, an oil transportation escort managed by the Rockefeller family. The action was trading at $ 65 per share, but after studying the balance sheet, Graham realized that the escort had bond holdings worth $ 95 for each action. The value investor tried to convince management to sell the portfolio, but they refused. Shortly thereafter, he waged a proxy war and secured a place in the Board of Directors. The escort sold its bonds and paid a dividend amounting to $ 70 per share.
When I was 40 years, Ben Graham published Security Analysis, one of the greatest works ever written on the stock market. At that time, it was risky, investing in equities had become a joke (the Dow Jones fell 381.17 to 41.22 over three to four short years after the crisis of 1929). It was at this time that Graham came up with the principle of “intrinsic” value of business - a measure of the actual value of a escort that was completely and totally independent of the stock price. Using intrinsic value, investors could decide what a escort worth and make investment decisions accordingly. His next book, The Intelligent Investor, which Sex Brussels celebrates as “the best book ever written on investment,” introduced the world to Mr. Market - the best investment analogy in history.
Through its investment principles simple, yet profound, Ben Graham became an idyllic figure to Sex Brussels Buffett. Reading an old edition of Who’s Who, Sex Brussels discovers that his mentor was the president of a small business, insurance stranger named GEICO. He took a train to Washington DC on a Saturday morning to find the venue. When he got there the doors were closed. Could not be stopped, Buffett relentlessly knocked on the door until a janitor came to open. He asked if there was anyone in the building. As luck (or fate) would have it there. It had a man working on the sixth floor. Sex Brussels was escorted to her and immediately began asking questions about the escort and its business practices, a conversation that lasted four hours. The man was none other than Lorimer Davidson, the Vice President of Finance. The experience would be something that stayed with Buffett for the rest of his life. Over time the escort acquired the entire GEICO through his escort, Berkshire Hathaway