Successful Investors:Benjamin Graham, Warren

Buffett and Peter Lynch

Preshita ChaurasiyaPGDM – Finance

2013030

Benjamin GrahamPersonal Profile:• Benjamin Graham (May 8, 1894 – September 21, 1976) - British-born American• Investment Manager and Financial educator.

Books:• Security Analysis - 1934• The Intelligent Investor – 1949

Fundamental investment disciplines:• Value Investing - father of value investing – taught at Columbia Business School in 1928• Security Analysis – fundamental analysis• Graham's most well-known disciples include Warren Buffett, William J. Ruane, Irving

Kahn and Walter J. Schloss.

Value Investing:• The strategy of buying stocks that trade for less than their intrinsic values.

Security Analysis:• to conduct a company stock valuation and predict its probable price evolution,• to make a projection on its business performance,• to evaluate its management and make internal business decisions

Mr. Market:• imaginary partner-temperamental-fluctuations-quotes-advantage

Margin of Safety:• The principle of buying a security at a significant discount to its intrinsic value, which is

thought to not only provide high-return opportunities but also to minimize the downside risk of an investment.

Warren Buffett

• Warren Edward Buffett (born August 30, 1930) is an American business magnate, investor and philanthropist. • Chairman, CEO and largest shareholder of Berkshire Hathaway.• Ranks 4th on the list of Forbes 10 richest people in the world.• Net worth of $58.2 billion.• Wizard of Omaha" or "Oracle of Omaha", or the "Sage of Omaha• Philanthropist – 99% - Bill & Melinda Gates Foundation

Berkshire Hathaway• Berkshire Hathaway Inc. (Berkshire), incorporated on June 16, 1998, is a

holding company owning subsidiaries engaged in a number of diverse business activities.• The Company is engaged in the insurance businesses conducted on both a

primary basis and a reinsurance basis, a freight rail transportation business and a group of utility, and energy generation and distribution businesses, confectionery, retail, railroad, home furnishings, encyclopaedias, manufacturers of vacuum cleaners, jewellery sales; newspaper publishing; manufacture and distribution of uniforms.• Ranked 5th on the list of Forbes Global 2000 largest public company in the

world.

Berkshire Hathaway HoldingsAmerican Express Co. (14.2%)The Coca-Cola Company (9.1%)DIRECTV (4.2%)Exxon Mobil Corp. (0.9%)Goldman Sachs (2.8%) IBM (6.3%)Moody's Corporation (11.5%)Munich Re (11.2%)Phillips 66 (3.4%)The Procter & Gamble Company (1.9%) Sanofi (1.7%)Tesco plc (3.7%)U.S. Bancorp (5.3%)Wal-Mart (1.8%)Wells Fargo (9.2%)

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American Express Co.The Coca-Cola CompanyDIRECTVExxon Mobil Corp.Goldman SachsIBMMoody's CorporationMunich RePhillips 66P&GSanofiTesco plcU.S. BancorpWal-MartWells Fargo

Berkshire Hathaway HoldingsCompany Sector Ownership % # of Shares Acquisition Date

American Express Insurance and Finance 14.2% 151,610,700 August 8, 2005

DaVita Healthcare Partners Healthcare 17.51% 37,621,152 2012

M&T Bank Insurance and Finance 4.8% 5,382,040 NA

Munich Re Insurance and Finance 11.2% NA February 2010

Anheuser-Busch Food and Beverage 9.8% NA 2005The Coca-Cola Company Food and Beverage 9.1% 400,000,000 June 20, 2009

Procter & Gamble Consumer Goods 1.9% 52,793,078 2005IBM Technology 6.3% 70,173,978 2012Goldman Sachs Investment Banking 2.8% 12,631,531 2013

Berkshire Hathaway Share Price

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Peter Lynch

Peter Lynch (born January 19, 1944) is an American businessman and stock investor.

Lynch graduated from Boston College in 1965 and earned a Master of Business Administration from the Wharton School of the University of Pennsylvania in 1968.

Books – investing• One Up on Wall Street - 1989• Beating the Street - 1993• Learn to Earn - 1996

• Fidelity Investments (American multinational financial services corporation) - investment analyst - director of research - 1974 to 1977.• 1977 – Manager- Magellan Fund - $18 million in assets• 1990 – Magellan fund - $14 billion in assets with more than 1,000

individual stock positions.• From 1977 until 1990, the Magellan fund averaged a 29.2% return

and as of 2003 had the best 20-year return of any mutual fund ever.• In 2007, Peter Lynch was serving as vice-chairman of Fidelity's

investment adviser, Fidelity Management & Research Co.

Investment Philosophy“Chameleon" - adapted to whatever investment style worked at the timeInvestment principle:• “Invest in what you know”• “Ten bagger” - investment which is worth ten times its original purchase priceLynch did consistently apply a set of eight fundamental principles to his stock selection process.1. Know what you own. 2. It's futile to predict the economy and interest rates. 3. You have plenty of time to identify and recognize exceptional companies. 4. Avoid long shots. 5. Good management is very important - buy good businesses. 6. Be flexible and humble, and learn from mistakes. 7. Before you make a purchase, you should be able to explain why you're buying. 8. There's always something to worry about.