the classroom, the boardroom, or the
pages of the test; their students took to
their decision-making tasks a new perception
of the analytical process. It is
these many thousands who have given
Security Analysis so much meaning in
financial markets. What could satisfy a
teacher more?
Dodd acknowledged Murray’s own contribution
to security analysis in his 1985
letter to the editor referenced at the beginning
of this article, thanking the editor for
including Murray’s piece, and writing, “As
our successor at Columbia for over 20 years,
no other whom you might have chosen
could have done a better job than Roger.”
Out of the Shadow
David L. Dodd passed away in 1988 at age
93 at Maine Medical Center in Portland
and rests in peace on Chebeague Island.
He left a legacy that shines brightly—out
of the shadow at last.
Coda I (2007)
Barbara Dodd (1932–2010) grew up with
her parents in New York. She attended
George School, an elite Quaker prep
school near Newtown in Bucks County,
PA, from 1946–1950. She went on to attend
St. Lawrence University and then earned
an MA from Columbia Teachers College.
She married John S. Anderson, a founder
of Associated Brass, which made model
railroading products under the Cal-Scale
brand name. He was a master die maker.
They settled in Fresno, CA.
Her father acquired Berkshire Hathaway
shares in Barbara’s name after Buffett
took control in 1969. Barbara admired
Buffett and never sold any of the shares
to fund personal needs during the ensuing
decades. She only sold some shares to
fund educational trusts and gifts, according
to her son, David Anderson. “She
never sold stock on the rare instances
when it lost value. She always had faith
that Mr. Buffett would bounce back—and
he always did.”
She became very active in philanthropy,
especially with Columbia Business
School and George School. At Columbia,
she endowed the David L. and Elsie M.
Dodd Chair in Finance, which is presently
held by Tano Santos. In 2007, she donated
$128,500,000 to the George School. It is
believed to be one of the largest single gifts to
a secondary school. She said that her father’s
long-time friend, Buffett, who announced in
June 2006 that he would bequeath the bulk
of his fortune to the Bill and Melinda Gates
Foundation, was her inspiration.
Buffett attended the gift ceremony at
the George School. “As both a teacher and
a friend, I revered Dave,” Buffett said in a
statement from the school. “I am delighted
that his decision to invest in Berkshire has
enabled Barbara to honor both her father
and George School through this wonderful
gift.”
Coda II (2009)
In the forward to the sixth edition of Security
Analysis, published in 2009, Buffett
wrote, “There are four books in my overflowing
library that I particularly treasure,
each of them written more than 50 years
ago.” He continued:
Two of those books are first editions
of The Wealth of Nations (1776) by
Adam Smith, and The Intelligent
Investor (1949) by Benjamin Graham.
The third is an original copy of the
book you hold in your hands, Graham
and Dodd’s Security Analysis. I
studied Security Analysis while I was
at Columbia University in 1950 and
1951, when I had the extraordinarily
good luck to have Ben Graham and
Dave Dodd as teachers. Together, the
book and the men changed my life…
Beyond the ideas Ben and Dave gave
me, they showered me with friendship,
encouragement, and trust. They cared
not a whit for reciprocation—toward
a young student, they simply wanted
to extend a one-way street of helpfulness.
In the end, that’s probably what
I admire most about the two men. It
was ordained at birth that they would
be brilliant; they elected to be generous
and kind.
But let’s go to the fourth book I mentioned,
which is even more precious.
In 2000, Barbara Dodd Anderson,
Dave’s only child, gave me her father’s
copy of the 1934 edition of Security
Analysis, inscribed with hundreds of
marginal notes. These were inked by
Dave as he prepared for the publication
of the 1940 revised edition. No gift
has meant more to me.
James Russell Kelly is Director of the
Gabelli Center for Global Security Analysis
and Senior Lecturer in Finance at
Fordham University. He graduated from
Columbia Business School in 1969.
Sources
Anderson, David. Telephone interview. June
12, 2020.
Buffett, Warren. “The Superinvestors of Graham
and Doddsville.” Hermes Magazine,
Columbia Business School. Fall 1984.
Buffett, Warren. “Forward.” In Benjamin Graham
and David L. Dodd, Security Analysis,
6th edition, xi–xii. New York: McGraw-Hill.
2009.
Dodd, David L. Stock Watering; the Judicial
Valuation of Property for Stock-Issue Purpose.
New York: Columbia University Press.
1930.
Dodd, David L. “Letter to the Editor: David
Dodd on Benjamin Graham.” Financial Analysts
Journal 41 (March–April 1985), p. 78.
Graham, Benjamin. The Memoirs of the Dean
of Wall Street, ed. Seymour Chatman. New
York: Mc Graw-Hill. 1996.
Graham-Newman Corporation. Partnership
returns by year (1946–1958), Heilbrunn
Center for Graham and Dodd Investing,
Columbia Business School. Archive section.
Last accessed June 28, 2020 https://
www8.gsb.columbia.edu/valueinvesting/
node/206#overlay-context=node/206
Loviglio, Joann. “Quaker School gets $128.5
million gift from Buffett Beneficiary.” The
Sentinel. September 19, 2007.
Murray, Roger F. “Graham and Dodd: A Durable
Discipline.” Financial Analysts Journal
40 (September–October 1984): 18–19, 22–23.
Rangel, Jesus. “Sovern warns of war at Columbia
graduation.” The New York Times. May
17, 1984.
Stein, Judy. Telephone interview. March 14,
2020.
Tanous, Peter J. “Roger F. Murray.” In Investment
Gurus: A Road Map to Wealth from
the World’s Bet Money Managers. New York
Institute of Finance. Upper Saddle River, NJ:
Prentice Hall. 1997.
Thomas, Brian, ed. Columbia Business School:
A Century of Ideas. New York: Columbia
University Press. 2016.
www.MoAF.org | Summer 2020 | FINANCIAL HISTORY 15