How to Think Like Benjamin Graham and Invest Like Warren Buffett

245

Notes

Chapter 1

1.Benjamin Graham,The Intelligent Investor(1st ed. 1949; 4th rev. ed. Harper &

Row, 1973), 108.

2.Fred Schwed, Jr.,Where Are the Customers’ Yachts?(1st ed. 1940; rev. ed. John

Wiley & Sons, 1995), 6–7.

3.The New York Stock Exchange Fact Book (New York, 1999), http://

http://www.nyse.com; Gretchen Morgenson, “Investing’s Longtime Best Bet Is Being

Trampled by the Bulls,”The New York Times, January 15, 2000.

4.Report of the Presidential Tas kForce on Mar ket Mechanisms (the Brady Re-

port), 1988.

5.Greg Ip, “Market on a High Wire,”The Wall Street Journal, January 18, 2000.

6.Burton G. Malkiel,A Random Walk Down Wall Street(1st ed. 1973; 7th rev.

ed. W. W. Norton, 1999), 57–61.

7.Warren E. Buffett and Lawrence A. Cunningham,The Essays of Warren Buffett:

Lessons for Corporate America(The Cunningham Group, 1997), 72.

8.Robert J. Shiller,Irrational Exuberance(Princeton University Press, 2000), 118–

132, catalogs and evaluates the 25 top bursts and busts on global stoc kex-

changes during one- and five-year periods from the 1960s through the 1990s.

9.Joseph de la Vega,Confusio ́n de Confusiones(1st ed. 1688; rev. ed. John Wiley

& Sons, 1996), 159–165 (the selected quotation condenses original material

without indicating omissions).

10.Malkiel,Random Walk,185.

11.Buffett and Cunningham,Essays, 63, 84. The price per share was $5.63, ag-

gregating $100 million, compared to a value of $400 to $500 million.

12.Graham,Intelligent Investor,289 (footnote omitted).

Chapter 2

1.For additional analysis and sources, consult Lawrence A. Cunningham, “From

Random Walks to Chaotic Crashes: The Linear Genealogy of the Efficient

Capital Market Hypothesis,”The George Washington University Law Review,

vol. 62 (1994), on which this chapter is based.

Copyright 2001 The McGraw-Hill Companies, Inc. Click Here for Terms of Use