DEFINITION of 'Benjamin Method'
The investment approach that aims to follow the strategies implemented by Benjamin Graham. The Benjamin Method of investing is based on fundamental principals of value investing, which is the process of discovering undervalued stocks. Benjamin Graham, the founder of value investing, was primarily concerned with minimizing losses rather than maximizing profits.
BREAKING DOWN 'Benjamin Method'
The Benjamin Method focuses on such metrics as the P/E ratio, which enables investors to determine how expensive the earnings of a company are relative to its competitors. However, rather than simply relying on static metrics, a full picture can only be determined by examining the quality of the earnings, as well as other corporate performance measures.