Despite assumptions to the contrary, Ben Graham did believe that markets are efficient. Eventually. He also believed that at any one time there are plenty of mispriced stocks out there for anyone who cared to look:
I can assure the reader that among the 500-odd NYSE issues selling below seven times earnings today, there are plenty to be found for which the prices are not ‘correct’ ones, in any meaningful sense of the term. They are clearly worth more than current selling prices, and any security analyst worth his salt should be able to make up an attractive portfolio out of this ‘universe’.
Ben Graham (1974)
Ben Graham (in The Intelligent Investor) had quite long sets of criteria for ...