Analyzes revenue, expenses, and the "earning power" of a company over time.
He warned against paying too much of a premium over the "book value" (the net worth of the company) unless the earnings justified it. 2. The Income Account: The "Motion Picture" Analyzes revenue, expenses, and the "earning power" of
Most investors in the 1930s (and frankly, most investors today) look at three things: Revenue, Earnings, and the Stock Price. Graham argues this is like judging a house by its paint color while ignoring the foundation, the wiring, and the roof. and the roof.