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.
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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.
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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%.
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