Does Benjamin Graham's Teaching Apply to Buying Entire Businesses as they Do to Stocks?

Dear Frind!

Such a wonderful question you have asked. I was looking for a way to up-vote your question but there seems to be none.

Golden knowledge like what Benjamin Graham propounded will defy compartmentalisation to a particular situation and will certainly attain a global hue. Yes it indeed applies for purchasing businesses also and indeed I apply the rules in evaluating acquisition deals I craft.

Conversely, Warren Buffett compares purchasing even a single share in a company to that of purchasing the whole business - applying the same caution, prudence and analysis - reinforcing your concern and my answer.

Buying a share and buying an entire business are one and the same and the same knowledge, care and patience shall exercised in both the situations - there is no room for even a shred of doubt or confusion about this.

You have asked me a question that has not occurred to me, nor has anyone asked me so far, but it is indeed a great question and I highly appreciate that you have raised it.

Thank you,

Anand

Sonnet to the Lady Investor

Like an eagle She soars high in the blue sky, fathoming for succulent opportunities in the vast financial landscape below;

Upon the tree cozy and lazy She gazes at the jungle of stocks, for the right prey to pounce upon, wandering innocently below;

Vulture’s patience She displays forever – hurry is never in Her vocabulary;

Sits on cash for years, She – waiting for the market crash long foresaw, She;

As an Amazonian parrot She has digested the investing lexicon – every word of He is a measured gem;

Wise as an Elephant she roams the market maze -

Remembering every lesson learnt amid agony;

Solitary She dwells; alone She hunts;

Prides and packs She abhors  - ferocious tigress She is;

Selfish She is not – teaches the world what She knows;

Riches and wealth She wants for All;

She is a Buffett – Graham She is;

She is knowledge – value investor She is.