Roger Babson

Roger Babson

Years of life: 1875 — 1967

Company: Babson Statistical Organization

Credo: Diversification, care and lack of a debt.

Influence: Sir Isaac Newton.

Intuition of the investor. In September, 1929 he warned investors about the forthcoming crash.

Quote: "More and more people have to learn to define, where to invest money instead of asking where they got to".

Principles. Future founder of College of Babson got engineering education in Massachusetts Institute of Technology, but during treatment for tuberculosis learned the statistical analysis. He bought a typewriter, developed an index of the market on the basis of the law of Newton on action and counteraction (the low prices have to follow high prices — and vice versa) and attracted 30 000 followers to the bulletin.

Invest like Babson. Take shares from the PowerShares FTSE RAFI 1000 Index ETF or FTSE RAFI All World 3000 indexes. There are a lot of stocks of the companies with low coefficient of P/B which pay dividends. 

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