Benjamin Graham: Evaluating Sugar SecuritiesRupert Hargreaves
In the early 1920s, Benjamin Graham, who is widely considered to be the Godfather of value investing, wrote a series of articles for the Magazine of Wall Street. These articles show off his analytical ability and give us great insight into how he approached valuation when looking at possible investments.
If you’re looking for value stocks, and exclusive access to value-focused hedge fund managers, check out ValueWalk’s exclusive value newsletter, Hidden Value Stocks.
One of these articles compared the stocks of major sugar producers.
Benjamin Graham: The Best Sugar Stock
As Benjamin Graham describes at the beginning of his article, the reason why sugar stocks looked so attractive in 1919/1920 was that earnings had surged after the First World War. During the war, the price of sugar was set by the International Sugar Committee, but when the war ended, the price restrictions were lifted, and demand sent sugar prices skyrocketing. This was a massive boon for Cuba, which at that time was the world's largest sugar producer.
According to Graham's article, at the time there were five primary sugar companies listed on the New York Stock Exchange.
This content is exclusively for paying members. Access all of our content on including years of timeless investment news and in depth analysis for only a few dollars a month by signing up here while also supporting quality content and journalism, or learn more about our premium content here
If you are subscribed and having an account error please clear cache and then cookies if that does not work email firstname.lastname@example.org and we will get back to you as quick as humanly possible