One of the underpinnings of Benjamin Graham’s financial advice to investors is that, at a certain price, ninety-nine out of one hundred companies in existence become attractive at a certain price. This is true even for the companies that you identify as mediocre, simply because they could theoretically reach a price so low that you can’t help but do all right.
Take a company I would never want to own over the long-term: Best Buy. Under a Graham analysis, there is a point where the company gets so cheap that it would necessarily become a successful investment over the intervening years. Let’s stipulate that the investors in the marketplace somehow decide to value … Read the rest of this article!