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%.


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 and we will get back to you as quick as humanly possible

Saved Articles

Are you a smart investor? Join tens of thousands of sophisticated investor reading our authoritative free newsletter

* indicates required

Congrats! Are you a smart person?

We have an exclusive targeted for being a sophisticated and loyal reader.

Sign up today and get three months free

Use coupon code vip19 or click on the button below

Limited time offer only ENDS 10/31/2019 or after next 25 20 subscribers take advantage whichever comes first – please do not share this discount with others