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October 31, 2005

New York Times Explores Columbia Business School's Roots in Value Investing

The story details the School’s history in shaping the principles of the investment strategy, dating from the groundbreaking 1934 book Security Analysis, by professors Benjamin Graham and David L. Dodd, to the more recent contributions to the field by Bruce Greenwald.


The New York Times explored Columbia Business School’s roots in value investing in a story on the 15th Annual Graham & Dodd Breakfast, which featured Jean-Marie Eveillard, who managed the First Eagle Global Fund for 25 years before retiring in 2004. The story details the School’s history in shaping the principles of the investment strategy, dating from the groundbreaking 1934 book Security Analysis, by professors Benjamin Graham and David L. Dodd, to the more recent contributions to the field by Bruce Greenwald, the Robert Heilbrunn Professor of Finance and Asset Management. Noted portfolio managers Mario J. Gabelli ’67 and Paul D. Sonkin ’95, who is also an adjunct professor, were among the more than 300 value investors who attended the October 18 breakfast.

Despite the phenomenal success of some investors -- such as Warren Buffett, MS ’51, perhaps the most famous of Graham’s disciples -- value investing remains a niche on Wall Street. Eveillard said in his remarks that only about five percent of professional money managers truly follow the principles of value investing because the patience required “goes against human nature.” The renowned fund manager consistently exceeded the market’s returns by following the strategy, which holds that the market can be beaten by picking “cheap” stocks that are undervalued.

The story appeared in the October 29 edition of The New York Times, available through TimesSelect.