This is an interesting article that points out something that has been in print for roughly 40 years: Benjamin Graham’s success as a portfolio manager is likely due to one lucky stock purchase.  The implication is that a passive strategy probably did just as good or even better than Mr. Graham’s approach once you remove the one lucky stock (apparently the predecessor to GEICO).  Also note that one lucky stock was not purchased on the open market.  Rather, it was purchased directly from one of the founders.  How many of us get to purchase at a low price directly from founders?

Here is the article:

http://www.anirudhsethireport.com/was-benjamin-graham-skillful-or-lucky/

Here are the actual pages from Benjamin Graham’s The Intelligent Investor book:

Intelligent_Investor_Postscript

By the way, the notion of Benjamin Graham applying his “rock solid” approach to investing and getting lucky on one stock is consistent with the Charles Schwab “Core and Explore” approach.  In “Core and Explore” you place 75% of your holdings in passive index funds.  The remaining 25% is where you take your gambles.

Food for thought…