Letters to Our Clients
Ben Graham may not have been the first to use the term “intrinsic value” as a form of analysis for stocks and bonds. But, through his teachings and the successful application of this approach by his many students and practitioners (including Warren Buffett, John Templeton, Seth Klarman, Mason Hawkins, Howard Marks and yours truly — not to imply that I am in the same category as those mentioned, but a believer none the less) he is given the credit. Understanding the concept of intrinsic value is necessary for an intelligent investor. Without understanding intrinsic value, its offspring, “margin of safety”, has no meaning.
Kendall J. Anderson, CFA