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Legends

Benjamin Graham

Graham-Newman Corporation, 1936–1956 · Profile

Historical: a partial record. These are holdings named in letters, filings or reports of the time, not a full portfolio.

Benjamin Graham taught value investing at Columbia and wrote its two founding books. His fund, Graham-Newman, bought companies selling for less than their net assets and ran arbitrage trades. Its best investment, half of GEICO in 1948, was a break from his own rules. Buffett and Schloss both worked for him.

Known holdings

Each line names its source. Where a size is given it’s as reported at the time.

Known holdings of Graham-Newman Corporation
DetailSource
Government Employees Insurance Co. (GEICO)1948A half-interest bought for about $712,500–$720,000, roughly a quarter of the fund's assets. Because of Investment Company Act limits it was distributed to Graham-Newman shareholders in July 1948 (1.08 GEICO shares per G-N share). Now wholly owned by Berkshire Hathaway.Kahn & Milne (1977); The Intelligent Investor postscript (pp. 532–533 in the 2003 ed.)
Bell Aircraft Corp.Jan 1946 – Jan 19483,890 shares ($126,425) at 31 Jan 1946; 12,300 shares ($221,400) at 31 Jan 1948.GuruFocus (2011), compiled from Graham-Newman annual reports
Buda CompanyJan 1946 – Jan 19532,500 shares ($77,500) at 31 Jan 1946; 4,000 shares ($57,500) at 31 Jan 1953.GuruFocus (2011), compiled from Graham-Newman annual reports
Brewster Aeronautical Corp.Jan 1946 – Jan 195110,000 shares ($50,000) at 31 Jan 1946, rising to 12,600 shares, which were nearly worthless by 1949–51.GuruFocus (2011), compiled from Graham-Newman annual reports
Electric Boat CompanyJan 19462,200 shares ($53,075) at 31 Jan 1946. Later General Dynamics (GD).GuruFocus (2011), compiled from Graham-Newman annual reports
A.D.F. Co.Jan 1946 – Jan 19501,300 shares at 31 Jan 1946, then 4,600 shares from 1947 to 1950.GuruFocus (2011), compiled from Graham-Newman annual reports
L.H. Gilmer CompanyJan 1946 – Jan 19482,200 shares ($6,325–$7,700).GuruFocus (2011), compiled from Graham-Newman annual reports
Gisholt Machine CompanyJan 1946 – Jul 1947200 shares.GuruFocus (2011), compiled from Graham-Newman annual reports
American Ship Building CompanyJan 1946100 shares ($4,462.50).GuruFocus (2011), compiled from Graham-Newman annual reports
Cuban American Manganese Corp.Jan 19461,000 shares ($5,250).GuruFocus (2011), compiled from Graham-Newman annual reports
Agwilines Inc.1948/1949Graham-Newman bought 70,000 shares, a controlling interest.Wikipedia, citing New York Times, 17 Dec 1948, p.55 (the date conflicts with the stated 1949 purchase)
Philadelphia & Reading Coal & Iron Co.Early-to-mid 1950sControlled by Graham-Newman. Buffett also bought it personally, with $35,000 invested by the end of 1954.MOI Global interview with Jeremy Miller (author of Warren Buffett's Ground Rules)
Rockwood & Co.1954Graham-Newman arbitraged Pritzker's cocoa-bean exchange offer by buying Rockwood shares and exchanging them for beans. Buffett described the trade himself.Wikipedia, citing Schroeder, The Snowball (2009) p.168; Buffett's own account is quoted at https://www.safalniveshak.com/latticework-of-mental-models-arbitrage/ (believed to be Berkshire's 1988 letter, not verified)