The Story Of The Graham–Newman Corporation’s Mega Bet On GEICO

Benjamin Graham and Jerome Newman didn't write particularly lengthy year-end letters to shareholders of the Graham--Newman Corporation, according to the records we have today. 

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.

The duo presented investors with an annual balance sheet and income statement prepared by auditors, as well as details on tax and compensation matters. There was no lengthy investor letter that is standard for hedge fund quarterly updates today. 
Short updates 
As I covered in the first part of this article, during the first decade of its operation, the Graham--Newman Corporation substantially outperformed its benchmark index. The corporation continued to achieve attractive returns in 1947 and 1948.

 According to its August 1947 annual report, the corporation reported a net asset value of $116.84 at the beginning of January 1947, compared to $125.88 at the end of January 1946 and $131.95 in January 1945. These figures do not include dividends. The corporation paid out a total of $17.10 per share in dividends during 1947, and its net asset value stood at $114.13 per share on January 31, 1948, giving a total return for the year of 12.3%.

SORRY!

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 support@valuewalk.com and we will get back to you as quick as humanly possible


Saved Articles
X
TextTExtLInkTextTExtLInk

The Life and Career of Charlie Munger

Charlie is more than just Warren Buffett’s friend and Berkshire Hathaway’s Vice Chairman – Buffett has actually credited him with redefining how he looks at investing. Now you can learn from Charlie firsthand via this incredible ebook and over a dozen other famous investor studies by signing up below:

  • Learn from the best and forever change your investing perspective
  • One incredible tidbit of knowledge after another in the page-turning masterpiece of a book
  • Discover the secrets to Charlie’s success and how to apply it to your investing
Never Miss A Story!
Subscribe to ValueWalk Newsletter. We respect your privacy.

Congrats! Are you a smart person?

We have an exclusive targeted & limited time offer for being a sophisticated and loyal reader.

ValueWalkPremium is a website and newsletter on the latest industry news much of which is not in the public domain and obtained via our sources.

We also have 10 years of resources on how to use this information to better your investment process.

Sign up for  today and get our exclusive content for 40% off. This is our second biggest discount ever!!

Use coupon code VIP20 or click on the button below

Limited time offer only ENDS 4/30/2020 or after the next 40 subscribers take advantage whichever comes first – please do not share this discount with others

 

0