Charles Brandes
Encyclopedia
Charles H. Brandes is one of the more closely followed value investors working today, as well being a disciple of the Benjamin Graham
school of value investing. Brandes Investment Partners, which was started in 1974, currently has over $52.9 billion under management and is based in San Diego, California
. In the Forbes 400
Richest Americans publication for 2007, Brandes ranked 165. He has been a CFA
charterholder for more than 25 years. Brandes met Ben Graham in San Diego while he was training to be a stockbroker. He was able to learn firsthand the techniques Graham used to determine undervalued investment securities.
As of 2007, Brandes' U.S. Value Equity fund has beaten the S&P 500
index for the past five, 10 and 15 years. According to the book Investment Leadership, Brandes' Global equity fund had an average return of 19.21% over the prior 20 years. Brandes Investments strictly follows Graham and Dodd principles as outlined in the books Security Analysis and The Intelligent Investor
. Also recently, the firm made investments in the troubled mortgage and financial sectors, paying bargain prices for investments in Countrywide Financial
, Washington Mutual
, Wachovia
Corp. and Bank of America
. Brandes is among the largest institutional shareholder of Royal Bank of Scotland
and General Motors
. Thomson Financial
's well-regarded Nelson's World's Best Money Managers rankings consistently lists Brandes Investment Partners among the Top 10 International Equity Fund Managers in the world.
Brandes' adherence to Graham and Dodd principles has extended to investment research. He commissioned a study to investigate the "Falling Knives" strategy, the investment axiom that catching falling knives (a stock whose price has been dropping precipetously) is like catching falling money (likely to lead to losses). Researching 1,000 companies between 1986 and 2002 whose price had fallen 60% over a twelve month period, the study found that within three years of the decline 13% of the companies went bankrupt, but despite this that the portfolio as a whole gained in value by 18% over three years. Brandes published a well received book on his investment strategies in 2003 titled Value Investing Today (McGraw-Hill, ISBN 0071417389).
Brandes majored in economics
at Bucknell University
, receiving a bachelors degree in 1965. He did graduates studies at San Diego State University
.
Benjamin Graham
Benjamin Graham was an American economist and professional investor. Graham is considered the first proponent of value investing, an investment approach he began teaching at Columbia Business School in 1928 and subsequently refined with David Dodd through various editions of their famous book...
school of value investing. Brandes Investment Partners, which was started in 1974, currently has over $52.9 billion under management and is based in San Diego, California
San Diego, California
San Diego is the eighth-largest city in the United States and second-largest city in California. The city is located on the coast of the Pacific Ocean in Southern California, immediately adjacent to the Mexican border. The birthplace of California, San Diego is known for its mild year-round...
. In the Forbes 400
Forbes 400
The Forbes 400 or 400 Richest Americans is a list published by Forbes Magazine magazine of the wealthiest 400 Americans, ranked by net worth. The list is published annually in September, and 2010 marks the 29th issue. The 400 was started by Malcom Forbes in 1982 and treats those in the list like...
Richest Americans publication for 2007, Brandes ranked 165. He has been a CFA
Chartered Financial Analyst
The Chartered Financial Analyst Program is a graduate level self-study program offered by the CFA Institute to investment and financial professionals...
charterholder for more than 25 years. Brandes met Ben Graham in San Diego while he was training to be a stockbroker. He was able to learn firsthand the techniques Graham used to determine undervalued investment securities.
As of 2007, Brandes' U.S. Value Equity fund has beaten the S&P 500
S&P 500
The S&P 500 is a free-float capitalization-weighted index published since 1957 of the prices of 500 large-cap common stocks actively traded in the United States. The stocks included in the S&P 500 are those of large publicly held companies that trade on either of the two largest American stock...
index for the past five, 10 and 15 years. According to the book Investment Leadership, Brandes' Global equity fund had an average return of 19.21% over the prior 20 years. Brandes Investments strictly follows Graham and Dodd principles as outlined in the books Security Analysis and The Intelligent Investor
The Intelligent Investor
The Intelligent Investor by Benjamin Graham, first published in 1949, is a widely acclaimed book on value investing, an investment approach Graham began teaching at Columbia Business School in 1928 and subsequently refined with David Dodd...
. Also recently, the firm made investments in the troubled mortgage and financial sectors, paying bargain prices for investments in Countrywide Financial
Countrywide Financial
Bank of America Home Loans is the mortgage unit of Bank of America. Bank of America Home Loans is composed of:*Mortgage Banking, which originates purchases, securitizes, and services mortgages. In 2008, Bank of America purchased the failing Countrywide Financial for $4.1 billion...
, Washington Mutual
Washington Mutual
Washington Mutual, Inc. , abbreviated to WaMu, was a savings bank holding company and the former owner of Washington Mutual Bank, which was the United States' largest savings and loan association until its collapse in 2008....
, Wachovia
Wachovia
Wachovia was a diversified financial services company based in Charlotte, North Carolina. Before its acquisition by Wells Fargo in 2008, Wachovia was the fourth-largest bank holding company in the United States based on total assets...
Corp. and Bank of America
Bank of America
Bank of America Corporation, an American multinational banking and financial services corporation, is the second largest bank holding company in the United States by assets, and the fourth largest bank in the U.S. by market capitalization. The bank is headquartered in Charlotte, North Carolina...
. Brandes is among the largest institutional shareholder of Royal Bank of Scotland
Royal Bank of Scotland
The Royal Bank of Scotland Group is a British banking and insurance holding company in which the UK Government holds an 84% stake. This stake is held and managed through UK Financial Investments Limited, whose voting rights are limited to 75% in order for the bank to retain its listing on the...
and General Motors
General Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
. Thomson Financial
Thomson Financial
Thomson Financial was an arm of The Thomson Corporation, which was one of the world's leading information companies, focused on providing integrated information solutions to business and professional customers...
's well-regarded Nelson's World's Best Money Managers rankings consistently lists Brandes Investment Partners among the Top 10 International Equity Fund Managers in the world.
Brandes' adherence to Graham and Dodd principles has extended to investment research. He commissioned a study to investigate the "Falling Knives" strategy, the investment axiom that catching falling knives (a stock whose price has been dropping precipetously) is like catching falling money (likely to lead to losses). Researching 1,000 companies between 1986 and 2002 whose price had fallen 60% over a twelve month period, the study found that within three years of the decline 13% of the companies went bankrupt, but despite this that the portfolio as a whole gained in value by 18% over three years. Brandes published a well received book on his investment strategies in 2003 titled Value Investing Today (McGraw-Hill, ISBN 0071417389).
Brandes majored in economics
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
at Bucknell University
Bucknell University
Bucknell University is a private liberal arts university located alongside the West Branch Susquehanna River in the rolling countryside of Central Pennsylvania in the town of Lewisburg, 30 miles southeast of Williamsport and 60 miles north of Harrisburg. The university consists of the College of...
, receiving a bachelors degree in 1965. He did graduates studies at San Diego State University
San Diego State University
San Diego State University , founded in 1897 as San Diego Normal School, is the largest and oldest higher education facility in the greater San Diego area , and is part of the California State University system...
.
See also
- Value InvestingValue investingValue investing is an investment paradigm that derives from the ideas on investment and speculation that Ben Graham and David Dodd began teaching at Columbia Business School in 1928 and subsequently developed in their 1934 text Security Analysis...
- Benjamin GrahamBenjamin GrahamBenjamin Graham was an American economist and professional investor. Graham is considered the first proponent of value investing, an investment approach he began teaching at Columbia Business School in 1928 and subsequently refined with David Dodd through various editions of their famous book...
- David DoddDavid DoddDavid LeFevre Dodd was an American educator, financial analyst, author, economist, professional investor, and in his student years, a of, and as a postgraduate, close colleague of Benjamin Graham at Columbia Business School.The Wall Street Crash of 1929 almost wiped out Graham, who had started...
- William J. RuaneWilliam J. RuaneWilliam J. Ruane was a Wall Street investment manager and philanthropist....
- Irving KahnIrving KahnIrving Kahn is an American value investor and money manager and the oldest living investment professional. He was an early disciple of Benjamin Graham, the creator of the value investing methodology. Kahn began his career in 1928 and continues to work to this day at the age of...