Why Kohl’s Is A Great Value Investment

While a teacher at Columbia University, Benjamin Graham would discourage his students from making the blanket statement, “Stock X is a great investment” or the close cousin “Stock Y is a bad investment.” The reason why Graham discouraged this line of thinking is because it ignores the extraordinarily important role that price plays in determining the expected and actual returns that an investment will generate.

If you’ve been at this site for a while, you are already familiar with the foolish habit of saying things like “Coca-Cola is a great investment” because you know that was not true for those investors that paid over 60x earnings to purchase Coca-Cola stock in the summer of 1998. The returns since then have been 2.69% annualized because the starting valuation of the stock was asinine. Some people mistakenly conclude that this is a repudiation of the notion that Coca-Cola is an excellent company, … Read the rest of this article!