FORDHAM UNIVERSITY GABELLI SCHOOL OF BUSINESS TOGETHER WITH THE GABELLI CENTER FOR GLOBAL INVESTMENT ANALYSIS Value Investing 20 Years Later: A Celebration of the Roger Murray Lecture Series 1993 _ 2013 April 17, 2013 5:30 _ 8:00 p.m. The Paley Center for Media 25 West 52nd Street New York City
Benjamin Graham David Dodd Roger Murray Bruce Greenwald VALUE INVESTING In 1993, we sponsored a Value Investing Lecture Series at The Museum of Television and Radio. Our intent was to share the underpinnings of the fundamental research philosophy as presented in Security Analysis (1934) by Benjamin Graham and David Dodd. It is the investment bible, the key to unlocking values in the stock market. In Security Analysis, Graham and Dodd presented principles and techniques to measure asset values and cash flows in a methodology to evaluate individual companies. They created the profession of security analysis using an investment process that is known today as value investing. Prof. Roger Murray was our first Guest Lecturer. We continue the tradition today. 1934 1940 1951 1962 1988 2001 2008
WE ARE DELIGHTED THAT YOU ARE ABLE TO JOIN US FOR THIS 20 TH ANNIVERSARY PRESENTATION. 5:30 Mario J. Gabelli - History of Value Investing - Program Introduction Chairman and CEO GAMCO Investors, Inc. 5:40 Joseph M. McShane, S.J. President of Fordham University 5:50 Bruce C.N. Greenwald - Value Presentation Academic Director The Heilbrunn Center for Graham and Dodd Investing at Columbia Business School 6:40 Donna Rappacioli Dean, Fordham Gabelli School of Business 6:45 James Russell Kelly - Student Recognition on Stage Director of The Gabelli Center for Global Investment Analysis Fordham Gabelli School of Business 7:00 Reception Lobby Bennack Theatre
FORDHAM UNIVERSITY JOSEPH M. MCSHANE, S.J. President of Fordham University and a native of New York City, Father McShane entered the Society of Jesus (the Jesuits) in 1967 and was ordained in 1977. He received an B.A. (English and Philosophy) and an M.A. (English) from Boston College. He holds a Ph.D. in the history of Christianity from the Univ. of Chicago and earned M.Div. and S.T.M. degrees from the Jesuit School of Theology at Berkeley. He was at LeMoyne College in Syracuse, NY from 1982 to 1992 and Dean of Fordham College at Rose Hill from 1992 to 1998. From 1998 to 2003, he served as President of The Univ. of Scranton. He became the 32nd President of Fordham University in 2003, succeeding Father Joseph A. O Hare, S.J. DONNA RAPACCIOLI, PH.D. Dean of Fordham s Gabelli School of Business (GSB), and Dean of the faculty of business. In her role as dean of the business faculty, Rapaccioli promotes Fordham as a premier institution for faculty excellence and enhanced scholarly research in fostering an accomplished and diverse faculty of close to 200 world class research scholars and industry experts. JAMES RUSSELL KELLY Director of the Gabelli Center for Global Investment Anlaysis will complement the work of the Gabelli Professor in Global Value Investing, and serves as a focal point for activity relating to value investing and securities research and valuation. The Center will employ students as research fellows and serve as a bridge between the academic community and the investment community. The Center will solidify Fordham s competitive advantage in offering this unique opportunity to its business students.
VALUE INVESTING BRUCE C.N. GREENWALD Bruce Greenwald is the Robert Heilbrunn Professor of Finance and Asset Management at Columbia University Graduate School of Business, joining the faculty in 1991. He is also the academic Director of the Heilbrunn Center for Graham and Dodd Investing. His academic background includes BS, Massachusetts Institute of Technology, 1967; MS, MPA, Princeton, 1969; and Ph.D., Massachusetts Institute of Technology, 1978. Dr. Greenwald received the 1997 Margaret Chandler Award for Commitment to Excellence in teaching and in 2000 became the first professor to win the Presidential Award, which honors great teaching at the University. At Columbia, his classes are consistently oversubscribed, with more than 650 students taking his courses every year in subjects such as Value Investing, Economics of Stragetic Behavior, Globalization of Markets, and Stategic Management of Media. ROGER F. MURRAY, II Roger Murray co-authored the fifth edition of Security Analysis in 1988. He grew up in New York City, attended the Collegiate School, and graduated from Phillips Andover Academy. He pursued his MBA and Ph.D. at New York University Graduate School of Business following his undergraduate work at Yale University. He had an extensive career in investment management at Bankers Trust (with a two year absence to serve in the United States Air Force) through 1955. He began his second career as Associate Dean and Adjunct Professor of Finance at Columbia University Graduate School of Business in 1954 and spent the next twenty-one years teaching security analysis, business finance, capital markets, and portfolio management. He was a founding director of the Investor Responsibility Research Center (IRRC) and was the originator of the concept of the Individual Retirement Account (IRA).
VALUE INVESTING BENJAMIN GRAHAM The father of value investing, was perhaps the most influential investor of all time. Following his studies at Columbia, Benjamin Graham became President of the Graham-Newman Corporation, an investment fund, as well as a lecturer in Finance at Columbia University Graduate School of Business. His books are investment classics, with The Intelligent Investor (first published in 1940) and Security Analysis (1934) selling steadily. His life and work have been an inspiration for many of today s most successful business people, including Warren Buffett. DAVID L. DODD Upon graduating from University of Pennsylvania in 1920, attended the School of Business at Columbia University where he obtained an MS in 1921. He began his career as an instructor at Columbia College before joining the faculty of the Business School in 1924. David Dodd became an Associate Dean in 1948 and retired from the school in 1961. Ben Graham and David Dodd started collaborating in 1928, when David transcribed Ben s course lectures. This collaboration in the teaching of the Security Analysis course at Columbia evolved into their seminal work, the 1934 edition of Security Analysis.
VALUE INVESTING Imagine that in some private business you own a small share that cost you $1,000. One of your partners, named Mr. Market, is very obliging indeed. Every day he tells you what he thinks your interest is worth and furthermore offers either to buy you out or sell you an additional interest on that basis. Sometimes his idea of value appears plausible and justified by business developments and prospects as you know them. Often, on the other hand, Mr. Market lets his enthusiasm or his fears run away with him, and the value he proposes seems to you a little short of silly. If you are a prudent investor or a sensible businessman, will you let Mr. Market s daily communication determine your view of the value of a $1,000 interest in the enterprise? Only in case you agree with him, or in case you want to trade with him. You may be happy to sell out to him when he quotes you a ridiculously high price, and equally happy to buy from him when his price is low. But the rest of the time you will be wiser to form your own ideas of the value of your holdings, based on full reports from the company about its operations and financial position. - Benjamin Graham, The Intelligent Investor, 1934
The value approach to investing pioneered by Professor Benjamin Graham and David Dodd and further developed by Professor Roger Murray and Bruce Greenwald of the Columbia University Graduate School of Business has been, by a wide margin, the most consistently successful approach to investing. This success has been validated by a number of academic/statistical studies, by the performance of valueoriented money management institutions, and by the records of individual, value-oriented investment managers. As a result, it remains our belief that the dissemination, extension, and refinement of the value approach are broadly beneficial to investors at large. In support of this, GAMCO Asset Management Inc. in cooperation with the Columbia University Graduate School of Business, has established an annual prize for Value Investing. The prize is intended to honor an individual, student, or practitioner who has made an outstanding contribution in at least one of five areas, which serve the goals of refining, extending, and disseminating the practice of Value Investing. Known as the Gabelli Prize, the prize was funded by GAMCO with $1 million, and is awarded at GAMCO s annual client symposium in May of each year. GABELLI CENTER FOR GLOBAL INVESTMENT ANALYSIS 2013