1. (Insert Company Name Here)
Benjamin Graham
(Insert Company Name Here)
Securities offered through LPL Financial. Member FINRA/SIPC

2. “Someone is Sitting in the Shade Today Because Someone Planted a Tree a Long Time Ago.” – Warren Buffett
(Read Slide) Warren Buffett knows the power of investing

3. Benjamin Graham
Sir Isaac Newton, the greatest mind of the last five hundred years is quoted, “If I have seen further than others, it is by standing On The Shoulders Of Giants…”
Warren Buffett believes the same thing as other giants in the mentoring concept. In his case he was fortunate to have been mentored by Benjamin Graham. Without Graham there probably would have been no Warren Buffett.
Benjamin Graham (May 8, 1894 – September 21, 1976)
(Read Slide) Warren was mentored by one of the greatest investors, Benjamin Graham.
Buffett, who credits Graham as grounding him with a sound intellectual investment framework, described him as the second most influential person in his life after his own father.

4. Graham’s Principles Were Relevant Then…
“For it is undoubtedly better to concentrate on one stock that you know is going to prove highly profitable, rather than dilute your results to a mediocre figure, merely for diversification’s sake. But this is not done, because it cannot be done dependably. The prevalence of wide diversification is in itself a pragmatic repudiation of the fetish of “selectivity,” to which Wall Street constantly pays lip service.” pg. 290
(Read Slide) In 1949, Benjamin Graham released “The Intelligent Investor”, which tells about his thoughts on investing. Even in the mid twentieth century, Graham realized that broad diversification for the sake of diversification was not a wise move. He contends that you should focus on what you perceive to be a profitable stock.
Originally Released in 1949

5. Graham’s Principles Are Relevant Today…
“The quant method can be defined as any method for security selection that comes from a systematic, disciplined, and repeated application of a process…”
“Back in 1949, when Benjamin Graham published the Intelligent Investor, he listed seven criteria that , in his opinion, defined “the quantitatively tested portfolio,” consisting of (1) adequate size of the enterprise, (2) sufficiently strong financial condition, (3) earnings stability, (4) dividend record, (5) earnings growth, (6) moderate P/E ratio, and (7) moderate ratio of price to book.” Pg. 3
(Read Slide) Graham’s thoughts continue to hold through today. How we perceive if a company is good or not to invest is based on the quantitative metrics that drive us to a systematic, disciplined, and repeatable process.
Released in 2011

6. A Conversation with Benjamin Graham:
“Let me suggest three such rules: (1) The individual investor should act consistently as an investor and not as a speculator. This means, in sum, that he should be able to justify every purchase he makes and each price he pays by impersonal, objective reasoning that satisfies him that he is getting more than his money's worth for his purchase--in other words, that he has a margin of safety, in value terms, to protect his commitment. (2) The investor should have a definite selling policy for all his common stock commitments, corresponding to his buying techniques. Typically, he should set a reasonable profit objective on each purchase--say 50 to 100 per cent--and a maximum holding period for this objective to be realized--say, two to three years. Purchases not realizing the gain objective at the end of the holding period should be sold out at the market. (3) Finally, the investor should always have a minimum percentage of his total portfolio in common stocks and a minimum percentage in bond equivalents. I recommend at least 25 per cent of the total at all times in each category. A good case can be made for a consistent division here, with adjustments for changes in the market level. This means the investor would switch some of his stocks into bonds on significant rises of the market level, and vice-versa when the market declines. I would suggest, in general, an average seven- or eight-year maturity for his bond holdings.”
What general rules would you offer the individual investor for his investment policy over the years?
(Read Slide) We do have a defined buy and sell policy, and we take an advance and protect strategy in regards to your portfolio’s exposure to stocks vs cash and have the opportunity to make adjustments each week in our trading algorithm.
Financial Analysts Journal, September 1976

7. Excerpts from Ben Graham’s Speech “Security in an Insecure World”
“We come finally to common-stock investment. My recommendation is that the investor choose either his own list of, say, 20 or 30 representative and leading companies…
Many investors would think my prescription too simple. If they can get results equal to the averages in this easy way why shouldn’t they try to get a substantially higher return by careful and competently-advised selection? My short answer has already been given: If the investment funds as a whole can’t beat the average, even pretty clever investors as a whole can’t do it either. The underlying problem of selection is that the “good stocks– chiefly the growth stocks with better than average prospects- tend to be fully priced in relation to value.”
St. Francis Hotel, November 15, 1963
(Read Slide)

8. Stock investing involves risk including loss of principal
Stock investing involves risk including loss of principal. Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price. No strategy assures success or protects against loss.