MATS INSTITUTE OF MANAGEMENT & ENTREPRENUERSHIP(MIME)

A STUDY ON

“LEGENDARY INVESTORS”

SUBMITTED TO

Dr.Batni Ragavendra Rao sir

SUBMITTED BY

VENKATA RAO MYNAMPATI

Enrollment No:09MMA4204
 Warren Buffett Biography

Warren Edward Buffett was born on August 30, 1930 to his father Howard, a stockbroker-turned-
Congressman. The only boy, he was the second of three children, and displayed an amazing
aptitude for both money and business at a very early age.

At only six years old, Buffett purchased 6-packs of Coca Cola from his grandfather's grocery
store for twenty five cents and resold each of the bottles for a nickel, pocketing a five cent profit.
While other children his age were playing hopscotch and jacks, Warren was making money. Five
years later, Buffett took his step into the world of high finance. At eleven years old, he purchased
three shares of Cities Service Preferred at $38 per share for both himself and his older sister,
Doris. Shortly after buying the stock, it fell to just over $27 per share. A frightened but resilient
Warren held his shares until they rebounded to $40. He promptly sold them - a mistake he would
soon come to regret. Cities Service shot up to $200. The experience taught him one of the basic
lessons of investing: patience is a virtue.

Warren Buffett's Education

In 1947, a seventeen year old Warren Buffett graduated from High School. It was never his
intention to go to college; he had already made $5,000 delivering newspapers (this is equal to
$42,610.81 in 2000). His father had other plans, and urged his son to attend the Wharton
Business School at the University of Pennsylvania. Buffett stayed two years, complaining that he
knew more than his professors. When Howard was defeated in the 1948 Congressional race,
Warren returned home to Omaha and transferred to the University of Nebraska-Lincoln. Working
full-time, he managed to graduate in only three years.Warren Buffett approached graduate studies
with the same resistance he displayed a few years earlier.He was finally persuaded to apply to
Harvard Business School, which, in the worst admission decision in history, rejected him as "too
young". Slighted, Warren applied to Columbia where famed investors Ben Graham and David
Dodd taught - an experience that would forever change his life.

Ben Graham - Buffett's Mentor

When he was 40 years old, Ben Graham published Security Analysis, one of the greatest works
ever penned on the stock market. At the time, it was risky; investing in equities had become a
joke (the Dow Jones had fallen from 381.17 to 41.22 over the course of three to four short years
following the crash of 1929). It was around this time that Graham came up with the principle of
"intrinsic" business value - a measure of a business's true worth that was completely and totally
independent of the stock price. Using intrinsic value, investors could decide what a company was
worth and make investment decisions accordingly. His subsequent book, The Intelligent Investor,
which Warren celebrates as "the greatest book on investing ever written", introduced the world to
Mr. Market - the best investment analogy in history.

Through his simple yet profound investment principles, Ben Graham became an idyllic figure to
the twenty-one year old Warren Buffett. Reading an old edition of Who's Who, Warren
discovered his mentor was the Chairman of a small, unknown insurance company named
GEICO. He hopped a train to Washington D.C. one Saturday morning to find the headquarters.
When he got there, the doors were locked. Not to be stopped, Buffett relentlessly pounded on the
door until a janitor came to open it for him. He asked if there was anyone in the building. As luck
(or fate) would have it, there was. It turns out that there was a man still working on the sixth
floor. Warren was escorted up to meet him and immediately began asking him questions about
the company and its business practices; a conversation that stretched on for four hours. The man
was none other than Lorimer Davidson, the Financial Vice President. The experience would be
something that stayed with Buffett for the rest of his life. He eventually acquired the entire
GEICO company through his corporation, Berkshire Hathaway.

Buffett is called the "Oracle of Omaha" or the "Sage of Omaha" and is noted for his adherence to
the value investing philosophy and for his personal frugality despite his immense wealth.Buffett
is also a notable philanthropist, having pledged to give away 99 percent of his fortune to
philanthropic causes, primarily via the Gates Foundation. He also serves as a member of the
board of trustees at Grinnell College.

Principles for Identifying a Good Business Purchase

Buffett believes there is no difference between buying a complete business and buying shares in
it. Rather, he invests in businesses with these key characteristics:

 He understands them.
 They have favorable long-term potential.
  They are managed by effective and honest managers.
 They are available at attractive prices.

To use Buffett’s approach in evaluating a business or stock, consider four factors: the business,
the management, the financial profit and the market value.

1. Business tenets: The business is simple and understandable, with a consistent operating history
and good long-term prospects.

2. Management tenets: Management is based on rational principles, including investing excess

capital at above average rates of return to shareholders. Managers should be honest with the
shareholders about the company.

3. Financial tenets: Look at the company’s return on equity rather than the earnings per share.
Select a company with a high profit margin. Seek a company that creates at least one dollar of
market value for every dollar retained.

4. Market tenets: Value the business and then determine if it can be purchased at a significant
discount compared to its value.

Buffett’s Holdings

As he achieved his great success, Buffett acquired a mix of holdings. These include permanent
holdings, fixed-income marketable securities, equity marketable securities, and some individual
high-performance stocks. His holdings include:

1. His permanent holdings, chosen because they represent great value, are four companies that
Buffett has determined he will never sell. He chose the Washington Post Company, in part,
because it is a dominant newspaper which has high economic goodwill value. Buffett values
Geico Corporation, a property-and-casualty insurance provider, because of its long-lasting
profitable franchise as a seller of low-cost insurance without an agent. Capital Cities/ABC is a
third permanent holding. Capital Cities is an $11 billion media and communications business
with TV, radio, cable, and other media networks. Buffett recently also invested in Coca-Cola,
which has both high name-brand recognition and the best worldwide distribution system for its
products.
2. Buffett’s fixed-income marketable securities include investments that offer the highest after-
tax returns. His long-term bonds include Washington Public Power Supply System and RJR
Nabisco. His convertible preferred stocks include investments in Salmon, Inc., the USAir Group,
Champion International and American Express.

3. Buffet has selected several equity marketable securities, including the Gillette Company,
General Dynamics, the Federal Home Loan Mortgage Corporation, Guinness PLC and the Wells
Fargo Company.

4. The individual stocks Buffett owns include the Gannett Company, PNC Bank Corporation,
Salomon Incorporated, the American Express Company and the Walt Disney Company.

Buffett’s Principles

Buffett’s investment approach, based on his common sense philosophy, has proven consistently
superior over time. Unlike many investors who see only a stock price, Buffett focuses on the
business when he invests. While others spend much of their time watching, predicting, and
anticipating price changes, Buffett focuses on understanding the business. To understand the
business, Buffett looks at a variety of factors, including, income statements, capital reinvestment
requirements, and the cash-generating capabilities of his companies. His view is that the investor
and business person should look at a company in the same way, because they both want a
profitable company. The only difference is that the business person wants to buy the whole
company, while the investor just wants to buy part of it.

If these economic measurements keep improving, then the share price will eventually reflect that
trend. It doesn’t matter what happens to the stock price on a day-to-day basis.

In its most simple form, Buffett’s Way boils down to four key steps:

1. Forget what happens on the stock market; don’t pay attention to it.

2. Forget what happens to the economy; don’t worry about economic cycles.

3. Remember that you are not buying a stock; you are buying a business.
4. Select the best businesses available when you manage your portfolio. You don’t have to
widely diversify and you don’t need to include every major industry. Stick to businesses you
know best, businesses that do well and provide good value.

24 ideas Buffet has followed from day one.

 Choose Simplicity over Complexity

 Make Your Own Investment Decisions
 Maintain Proper Temperament
 Be Patient
 Buy Business, Not Stocks
 Look for a Company that is a Franchise
 Buy Low-Tech, Not High-Tech
 Concentrate Your Stock Investments
 Practice Inactivity, Not Hyperactivity
 Don’t Look at the Ticker
 View Market Downturns as Buying Opportunities
 Don’t Swing at Every Pitch
 Ignore the Macro; Focus on the Micro
 Take a Close Look at Management
 Remember, The Emperor Wears No Clothes on Wall Street
 Practice Independent Thinking
 Stay within Your Circle of Competence
 Ignore Stock Market Forecasts
 Understand “Mr. Market” and the “Margin of Safety”
 Be Fearful when Others Are Greedy and Greedy When Others Are Fearful
 Read, Read Some More, and Then Think
 Use All Your Horsepower
 Advantage the Costly Mistakes of Others
 Become a Sound Investor
Present holdings of Warren buffet:
  %
Weighting
# of of
Shares Portfolio
Ran (millions (as of
k Stock ) 6/30/09)
1 Coca-Cola (KO) 200.0 21.60%
2 Wells Fargo (WFC*) 320.0 19.56%
3 American Express (AXP) 151.6 12.28%
4 Procter & Gamble (PG*) 79.1 9.83%
5 Kraft Foods Inc. (KFT) 106.7 6.34%
6 Wesco Financial 5.7 4.32%
Corp. (WSC)
7 Wal-Mart (WMT) 39.0 4.26%
8 US Bancorp (USB) 69.0 3.51%
9 ConocoPhillips (COP) 34.2 3.43%
10 Johnson & Johnson (JNJ) 23.9 3.06%
11 Moody's Corp. (MCO) 30.8 1.80%
12 Washington Post Co. (WPO) 1.7 1.51%
13 Nike Inc. (NKE) 7.6 1.10%
14 M&T Bank Corp. (MTB) 5.6 0.87%
15 Republic Services Inc. (RSG)  10.8 0.62%
16 USG Corp. (USG) 17.1 0.58%
17 Costco (COST) 4.3 0.51%
18 Nalco Holding Co. (NLC) 9.0 0.43%
19 Comcast (CMCSK) 12.0 0.42%
20 Iron Mountain Inc. (IRM) 7.8 0.42%
21 Ingersoll-Rand (IR) 5.6 0.39%
22 CarMax Inc. (KMX) 7.7 0.38%
23 Nestle S.A. (NSRGY.PK) 3.4 0.34%
24 Lowe's (LOW) 6.5 0.31%
25 Torchmark Corp. (TMK) 2.8 0.30%
26 Sanofi-Aventis (SNY) 3.9 0.29%
27 General Electric (GE) 7.8 0.28%
28 Becton Dickinson & 1.7 0.27%
Co. (BDX)
29 NRG Energy, Inc. (NRG) 6.0 0.25%
30 United Parcel Service, 1.4 0.18%
Inc. (UPS*)
31 Bank of America (BAC*) 5.0 0.18%
32 Home Depot (HD*) 2.8 0.18%
33 GlaxoSmithKline (GSK) 1.5 0.11%
34 Gannett Co., Inc. (GCI) 1.7 0.06%

35 Exxon Mobil (XOM) 0.4 0.06%

36 Comdisco Holding Co. 1.5 0.03%
Inc. (CDCO.OB)
Acq Burlington Northern Santa 0.0 0.00%
Fe (BNI)**

Sold This Quarter:

xx SunTrust Banks Inc. (STI)  0.0 0.00%
Sold this position!
xx Travelers Insurance (TRV)  0.0 0.00%
Sold this position!
xx Unitedhealth Group, 0.0 0.00%
Inc. (UNH) Sold this position!
xx WellPoint Inc. (WLP) 0.0 0.00%
Sold Last Quarter:
xx Norfolk Southern 0.0 0.00%
Corp. (NSC)  Sold this
position!
xx Union Pacific Corp. (UNP)  0.0 0.00%
 Sold this position!
xx WABCO Holdings 0.0 0.00%
Inc. (WBC)  Sold this
position!
xx Eaton Corp. (ETN)  Sold this 0.0 0.00%
position!

PETER LYNCH

Peter Lynch is best known for his work with the Magellan Fund through Fidelity Investments. He
grew the fund from $18 million to $14 billion over the course of 13 years. His investment
strategies and policies have been studied around the world and Lynch wrote about investing in a
series of books published during his career. Although he still works with Fidelity Investments, he
now spends most of his time engaged in philanthropic endeavors.

Peter Lynch was born on January 19, 1944 in Newton, Massachusetts and later attended Boston
College to study finance. He graduated in 1965 and was hired as an intern with Fidelity
Investments the following year. Lynch had been working as a caddy for the president of Fidelity,
as well as other investment bankers, at the Brae Burn Country Club in nearby Newton and had
befriended the gentlemen.After working with the paper, chemical, and publishing industries in
Fidelity, Peter Lynch took two years to join the Army and serve his country. When he returned in
1969, Fidelity hired him full time and put him in charge of investments involving textiles,
mining, metals, and chemicals. Five years later, in 1974, Fidelity made Lynch the director of
research and three years later he was named the head of the Magellan Fund. In 1977, the
Magellan Fund was small and obscure, worth a limited $18 million in assets. Thirteen years later,
in 1990, the Magellan Fund was worth $14 billion largely due to Lynch's work.

Due to the success of his investments, Peter Lynch wrote investment books alongside co-author
John Rothchild. One Up on Wall Street, Beating the Street, and Learn to Earn were published
during his career. Although they discuss theories and the application of these theories, Lynch's
greatest feat was creating strategies that anyone could use. Investors today still rely on these
books.

Peter Lynch never had one specific investment style, instead he changed his strategies with
changes in the market. According to Lynch, despite his "chameleon" approach to investments, he
did rely on certain core investment principles. He firmly believed that no one could predict
fluctuations in the economy or interest rates and therefore it was futile to try and do so. As a
result, he was an advocate of research and suggested that people take the time to identify great
companies in which to invest instead of taking long shots.

Lynch also believed in good management and that individuals looking to invest in a company
should study the management structure and the people in charge of running the business. Most
importantly, however, Peter Lynch believed in buying what you know. Familiarity is key
according to Lynch.

Although he still serves as vice-chairman of Fidelity Management & Research Co., the
investment advisor to Fidelity Investments, he spends most of his time on philanthropic
endeavors. He gives money through the Lynch Foundation, Fidelity Charitable Gift Fund, and
charitable trusts. The foundation named for Peter Lynch supports religious organizations, cultural
and historical organization, education, and medicine.

Investment philosophy

Lynch coined some of the best known mantras of modern individual investing strategies.His
most famous investment principle is simply, "Invest in what you know," popularizing the
economic concept of "local knowledge". This simple principle resonates well with average non-
professional investors who don't have time to learn complicated quantitative stock measures or
read lengthy financial reports. Since most people tend to become expert in certain fields,
applying this basic "invest in what you know" principle helps individual investors find good
undervalued stocks.

Lynch uses this principle as a starting point for investors. He has also often said that the
individual investor is more capable of making money from stocks than a fund manager, because
they are able to spot good investments in their day-to-day lives before Wall Street. Throughout
his two classic investment primers, he has outlined many of the investments he found when not
in his office - he found them when he was out with his family, driving around or making a
purchase at the mall. Lynch believes the individual investor is able to do this, too.

He also coined the phrase "ten bagger" in a financial context. This refers to an investment which
is worth ten times its original purchase price and comes from baseball where "bags" or "bases"
that a runner reaches are the measure of the success of a play. A "two bagger" would be a double,
so by extension, two home runs and a double would be a "ten bagger".

PORTFOLIO

Here are some examples of what you can find among the current list of top Lynch stocks:

Monarch Cement (MCEM)

U.S. Lime & Minerals (USLM)

Span-America Medical Systems (SPAN)

Brookfield Properties (BPO)

NVE Corp. (NVEC)

TEMPLETON
Sir John Marks Templeton was an investor and mutual fund pioneer. Templeton was born in the
town of Winchester, Tennessee. He attended Yale University and was selected for membership in
the Elihu society. He financed a portion of his tuition by playing poker, a game at which he
excelled. Templeton graduated in 1934 near the top of his class. He attended Oxford University
as a Rhodes Scholar and graduated with a M.A. in law.

Templeton married Judith Folk in 1937 and the couple had three children: John Jr., Anne and
Christopher. Judith died in February 1951 in a motorbike accident. He then married Irene
Reynolds Butler in 1958; she died in 1993.He was a lifelong member of the Presbyterian Church.
He served as an elder of the First Presbyterian Church of Englewood (NJ). He was a trustee on
the board of Princeton Theological Seminary, the largest Presbyterian seminary, for 42 years and
served as its chair for 12 years.

Templeton became a billionaire by pioneering the use of globally diversified mutual funds. His
Templeton Growth, Ltd. (investment fund), established in 1954, was among the first who
invested in Japan in the middle of the 1960s.He is noted for buying 100 shares of each company
for less than $1 ($16 in current dollar terms) a share in 1939 and making many times the money
back in a 4 year period. In 2006 he was listed in a 7-way tie for 129th place on the Sunday Times
Rich List. He rejected technical analysis for stock trading, preferring instead to use fundamental
analysis.Money magazine in 1999 called him "arguably the greatest global stock picker of the
century”. He renounced his U.S. citizenship in 1968, thus avoiding U.S. income taxes.He had
dual naturalized Bahamian and British citizenship and lived in the Bahamas.

As a philanthropist, Templeton established

 the John Templeton Foundation;

 the Templeton Prize for Progress Toward Research or Discoveries about Spiritual
Realities in 1972.
 the Templeton Library in Sewanee, Tennessee.
 the Templeton College of the University of Oxford (by endowing the Oxford Centre for
Management Studies to become a full college of the university having as a focus business
and management studies)
Templeton College is now closely associated with Oxford's Saïd Business School. In 2007,
Templeton College transferred its executive education program to Saïd Business School. In 2008,
Templeton College merged with Green College to form Green Templeton College.This is one of
the exceptional mergers in recent history of the University of Oxford.He was created a Knight
Bachelor in 1987 for his philanthropic efforts.

Templeton was inducted into the Junior Achievement U.S. Business Hall of Fame in 1996.

In 2007, Templeton was named one of Time magazine's 100 Most Influential People (Time 100)
under the category of "Power Givers." Templeton was given this honor for his "pursuit of
spiritual understanding, often through scientific research" through his establishment of the John
Templeton Foundation.Templeton attributed much of his success to his ability to maintain an
elevated mood, avoid anxiety and stay disciplined. Uninterested in consumerism, he drove his
own car, never flew first class and lived year-round in the Bahamas.

Templeton became known for his "avoiding the herd" and "buy when there's blood in the streets"
philosophy.He also was known for taking profits when values and expectations were high.

Templeton was a Chartered Financial Analyst (CFA) charter-holder. He received AIMR's first
award for professional excellence in 1991.

In 2005, he wrote a brief memorandum predicting that within five years there would be financial
chaos in the world. It was eventually made public in 2010.

GEORGE SOROS

Soros fled Hungary in 1947 for England, where he graduated from the London School of
Economics in 1952 and then obtained an entry-level position with an investment bank in
London. In 1956, he immigrated to the United States and held analyst and investment
management positions at the New York firms of F.M. Mayer (1956-59), Wertheim & Co. (1959-
63) and Arnhold & S. Bleichroeder (1963-73).

Soros went off on his own in 1973, founding the hedge fund company of Soros Fund
Management, which eventually evolved into the well-known and respected Quantum Fund. For
almost two decades, he ran this aggressive and successful hedge fund, reportedly racking up
returns in excess of 30% per year and, on two occasions, posting annual returns of more than
100%. In the late 1980s, he gave up the day-to-day management of the Quantum Fund and, as
one of the wealthiest people in the world, became a substantial philanthropist, donating huge
sums worldwide through his Open Society Foundation.

Investment Style

George Soros was a master at translating broad-brush economic trends into highly leveraged,
killer plays in bonds and currencies. As an investor, Soros was a short-term speculator, making
huge bets on the directions of financial markets. He believed that financial markets can best be
described as chaotic. The prices of securities and currencies depend on human beings, or the
traders - both professional and non-professional - who buy and sell these assets. These persons
often act out based on emotion, rather than logical considerations.

George Soros gained international notoriety when, in September of 1992, he risked $10 billion
on a single currency speculation when he shorted the British pound. He turned out to be right,
and in a single day the trade generated a profit of $1 billion – ultimately, it was reported that his
profit on the transaction almost reached $2 billion. As a result, he is famously known as the "the
man who broke the Bank of England."

Soros is also famous for running the Quantum Fund, which generated an average annual return
of more than 30% while he was at the helm. Along with the famous pound trade, Soros was also
cited by some as the "trigger" behind the Asian financial crisis in 1997, as he had a large bet
against the Thai baht.

He is also widely known for his political activism and philanthropic efforts.

George Soros' 10 largest holdings*

Name % of total assets

Adams Respiratory Therapeutics (ARXT) 19.29

JetBlue Airways Corp (JBLU) 8.98

Bluefly Inc (BFLY) 6.34

Auxilium Pharmaceuticals Inc (AUXL) 3.89

Apex Silver Mines Ltd (SIL) 3.36

Adolor Corp (ADLR) 2.15

Pioneer Natural Resources Co. (PXD) 1.96

Companhia Vale Do Rio Doce (RIO) 1.93

Homex Development Corp (HXM) 1.69

NPS Pharmaceuticals Inc (NPSP) 1.61

BENJAMIN GRAHAM
Early life

Benjamin Graham was born Benjamin Grossbaum in London, England. He moved to New York
City with his family when he was one year old. After the death of his father and experiencing the
humiliation of poverty, he became a good student, graduating from Columbia, as salutatorian of
his class, at the age of 20. He received an invitation for employment as an instructor in English,
Mathematics, and Philosophy, but took a job on Wall Street eventually starting the Graham-
Newman Partnership.

Career

His book, Security Analysis, with David Dodd, was published in 1934 and has been considered a
bible for serious investors since it was written.[citation needed] It and The Intelligent Investor
published in 1949 (4th revision, with Jason Zweig, 2003), are his two most widely acclaimed
books. Warren Buffett describes The Intelligent Investor as "the best book about investing ever
written." Graham exhorted the stock market participant to first draw a fundamental distinction
between investment and speculation. In Security Analysis, he proposed a clear definition of
investment that was distinguished from what he deemed speculation. It read, "An investment
operation is one which, upon thorough analysis, promises safety of principal and an adequate
return. Operations not meeting these requirements are speculative."

Graham wrote that the owner of equity stocks should regard them first and foremost as
conferring part ownership of a business. With that perspective in mind, the stock owner should
not be too concerned with erratic fluctuations in stock prices, since in the short term, the stock
market behaves like a voting machine, but in the long term it acts like a weighing machine (i.e.
its true value will in the long run be reflected in its stock price). Graham distinguished between
the passive and the active investor. The passive investor, often referred to as a defensive investor,
invests cautiously, looks for value stocks, and buys for the long term. The active investor, on the
other hand, is one who has more time, interest, and possibly more specialized knowledge to seek
out exceptional buys in the market.[citation needed] Graham recommended that investors spend
time and effort to analyze the financial state of companies. When a company is available on the
market at a price which is at a discount to its intrinsic value, a "margin of safety" exists, which
makes it suitable for investment.

Graham wrote that investment is most intelligent when it is most businesslike, a statement which
Warren Buffett regarded as the most important words about investment ever written.[citation
needed] Graham said that the stock investor is neither right nor wrong because others agreed or
disagreed with him; he is right because his facts and analysis are right.[citation needed] The
Intelligent Investor p. 524 (Revised Ed 2006) Graham's favorite allegory is that of Mr. Market, a
fellow who turns up every day at the stock holder's door offering to buy or sell his shares at a
different price. Often, the price quoted by Mr. Market seems plausible, but often it is ridiculous.
The investor is free to either agree with his quoted price and trade with him, or to ignore him
completely. Mr. Market doesn't mind this, and will be back the following day to quote another
price. The point is that the investor should not regard the whims of Mr. Market as determining
the value of the shares that the investor owns. He should profit from market folly rather than
participate in it. The investor is best off concentrating on the real life performance of his
companies and receiving dividends, rather than being too concerned with Mr. Market's often
irrational behavior.

Graham was critical of the corporations of his day for obfuscated and irregular financial
reporting that made it difficult for investors to discern the true state of the business's finances. He
was an advocate of dividend payments to shareholders rather than businesses keeping all of their
profits as retained earnings. He also criticized those who advised that some types of stocks were
a good buy at any price, because of the prospect of sustained stock price growth, without a good
analysis of the business's actual financial condition. These observations remain extremely
relevant today.

Legacy

In recent years, Graham's "Mr. Market" approach has been challenged by Modern Portfolio
Theory, as advanced by such proponents as William J. Bernstein, whose book The Intelligent
Asset Allocator extends Graham's The Intelligent Investor via an appreciation of long-term
trends and the near impossibility of understanding the market writ large. Modern Portfolio
Theory posits that it is generally impossible for any individual to outwit the market, and is
widely taught in American and British business schools. Nevertheless, Graham's approach
retains a widespread and dedicated following. Indeed, numerous academic studies, including
"Contrarian Investment, Extrapolation, and Risk", "Good news for value stocks: Further
evidence on market efficiency", "The Cross Section of Expected Stock Returns", and many
others, have proven that value stocks outperform the market over virtually all multi-year periods.

According to Warren Buffett, Graham said that he wished every day to do something foolish,
something creative, and something generous. Buffett said that Graham excelled most at the
last.He was known to have affairs with many women.

Screening result (July 19, 2009)

Here are the stocks and their Ben Graham Portfolio scores (5 being the highest, negative scores
should be considered for sell)
 Mkt cap Price (Jul Ben Graham
. Stock Company P/E
($M) '09) Score (1-5)

. JOSB Jose A Banks 640 34.99 10.77 5

Spartan Motors,
. SPAR 296 9.12 8.71 5
Inc

. GRMN Garmin Ltd. 4,927 24.6 8.11 5

. NHYDY Norsk Hydro 5,839 4.83 1.85 4

. ARO Aeropostale 2,512 37.23 15.37 4

Lincoln Electric
. LECO 1,583 37.24 10.35 4
Holdings

. DBRN Dress Barn 861 14.32 13.95 4

Schnitzer Steel
. SCHN 1,459 51.64 18 4
Industries

Frontier Oil
. FTO 1,390 13.27 12.88 4
Corporation

Friedman
. FRD 37 5.42 2.69 4
Industries

Schuff
. SHFK 100 14.12 2.52 4
International, Inc

National Presto
. NPK 540 78.73 11.05 3
Industries
 Oil States
. OIS 1,303 26.28 6.38 3
International

. PFE Pfizer 100,950 14.96 12.67 3

. MRINA McRae Industries 28 10.93 8.11 2

JIM ROGERS

James Beeland Rogers, Jr. born on October 19, 1942. He is an American investor and financial
commentator based both in Singapore and Miami. He was a co-founder of the Quantum Fund,
and is a college professor, author, economic commentator, and creator of the Rogers International
Commodities Index (RICI). He is an outspoken proponent of the free market but does not
consider himself a member of any school of thought. Rogers acknowledges, however, that his
views best fit the label of Austrian School of economics.

Rogers was born in Baltimore, Maryland and raised in Demopolis, Alabama. He started in
business at the age of five by selling peanuts and by picking up empty bottles that fans left
behind at baseball games. He got his first job on Wall Street, at Dominick & Dominick, after
graduating with a bachelor's degree from Yale University in 1964. Rogers then acquired a second
BA degree from Balliol College, Oxford University in 1966.

In 1970, Rogers joined Arnhold & S. Bleichroeder. That same year, Rogers co-founded the
Quantum Fund. During the following 10 years the portfolio gained 4200% while the S&P
advanced about 47%.It was one of the first truly international funds.
In 1980, Rogers decided to "retire", and spent some of his time traveling on a motorcycle around
the world. Since then he has been a guest professor of finance at the Columbia University
Graduate School of Business.

In 1989 and 1990, Rogers was the moderator of WCBS' The Dreyfus Roundtable and FNN's The
Profit Motive with Jim Rogers. From 1990 to 1992, he traveled through China again, as well as
around the world, on motorcycle, over 100,000 miles (160,000 km) across six continents, which
was picked up in the Guinness Book of World Records. He tells of his adventures and worldwide
investments in Investment Biker.

In 1998, Rogers founded the Rogers International Commodity Index. In 2007, the index and its 3
sub-indices were linked to exchange-traded notes under the banner ELEMENTS. The notes track
the total return of the indices as an accessible way to invest in the index. Rogers is an outspoken
advocate of agriculture investments and, in addition to the Rogers Commodity Index, is involved
with two direct, farmland investment funds - Agrifirma (based in Brazil) and Agcapita Farmland
Investment Partnership (based in Canada).

Between January 1, 1999 and January 5, 2002, Rogers did another Guinness World Record
journey through 116 countries, covering 245,000 kilometers with his wife, Paige Parker, in a
custom-made Mercedes. The trip began in Iceland, which was about to celebrate the 1000th
anniversary of Leif Eriksson's first trip to America. On January 5, 2002, they were back in New
York City and their home on Riverside Drive. His route around the world can be viewed on his
website, jimrogers.com. He wrote Adventure Capitalist following this around-the-world
adventure. It is currently his best selling book.

On his return in 2002, Rogers became a regular guest on Fox News' Cavuto on Business which
airs every Saturday.In 2005, Rogers wrote Hot Commodities: How Anyone Can Invest Profitably
in the World's Best Market. In this book, Rogers quotes a Financial Analysts Journal academic
paper co-authored by Yale School of Management professor, Geert Rouwenhorst, entitled Facts
and Fantasies about Commodity Futures. Rogers contends this paper shows that commodities
investment is one of the best investments over time, which is a concept somewhat at odds with
conventional investment thinking.
In December 2007, Rogers sold his mansion in New York City for about 16 million USD and
moved to Singapore. Rogers claimed that he moved because now is a ground-breaking time for
investment potential in Asian markets. Rogers' first daughter is now being tutored in Mandarin to
prepare her for the future. He is quoted as saying: "If you were smart in 1807 you moved to
London, if you were smart in 1907 you moved to New York City, and if you are smart in 2007
you move to Asia." In a CNBC interview with Maria Bartiromo broadcast on May 5, 2008,
Rogers said that people in China are extremely motivated and driven, and he wants to be in that
type of environment, so his daughters are motivated and driven. He also stated that this is how
America and Europe used to be. He chose not to move to Chinese cities like Hong Kong or
Shanghai due to the high levels of pollution causing potential health problems for his family;
hence he chose Singapore. He has also advocated investing in certain smaller Asian frontier
markets such as Sri Lanka and Cambodia, and currently serves as an Advisor to Leopard
Capital’s Leopard Sri Lanka Fund.However, he is not fully bullish on all Asian nations, as he
remains skeptical of India's future - "India as we know it will not survive another 30 or 40
years".Rogers has two daughters with Paige Parker; Happy was born in 2003, and their second
daughter Baby Bee in 2008. His latest book, A Gift To My Children, contains lessons in life for
his daughters as well as investment advice and was published in 2009.

PHILOSOPHY

Jim Rogers’s philosophy consists of studying bullish and bearish markets by cross-referencing
historical events. Most investors don’t have a problem knowing when an investment is cheap.
The hard part is knowing that a change is about to occur in the near future. This is where
studying markets and their history are so important.

PORTFOLIO
Symbol / Co Last Price
C Citigroup Inc. $3.90
FNM Fannie Mae $0.25
(FNMA)
LEN Lennar $13.82
Corporation