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23 Nov 2023

Market Metrics: Profitable vs Unprofitable

Benjamin Graham is just such a talent, even in death he is always right.

Graham laid the foundations for value investing principles which detail how to value an asset.

Many ‘things’ can be called an asset but Graham narrows down the investable universe of ‘things’ using key criteria, the most important of which is that the ‘thing’ you buy must produce a profit.

It is incredibly easy to get attracted to shiny and exciting ‘things’ on the promise that they will make a profit but time and time again it proves to be a financial disaster.

To give you an example of Graham’s thinking we have attached charts that track profitable and unprofitable ‘things’ and unsurprisingly, decade after decade the investors chasing the unprofitable shiny and exciting ‘things’ suffer financially.

Click for chart.

Newealth is built on Graham’s principles, boring yes but beautiful in how they just work.

If you have family, friends or colleagues that want financial advice please ask them to contact us and we will work out how best to help.


At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.

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