The Legacy of Graham and Dodd

May 01, 2014

Eighty years have passed since two of the fathers of value investing, Benjamin Graham and David Dodd, wrote Security Analysis, their famous book laying out a systematic approach to stock selection.

In this video, AQR Principal Lasse H. Pedersen, who also teaches at New York University and Copenhagen Business School, talks about how value investing and quality investing have performed since 1934. The answer is that both strategies have done well, both for U.S. and global stocks as he and his colleagues Cliff Asness and Andrea Frazzini show in their white paper “Quality Minus Junk.”

Pedersen adds that the performance of value and quality investing can help to explain Warren Buffett’s performance.



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