Maurece Schiller (1901-1994) began on the bottom rung of Wall Street in 1922, where he saw a world designed to rip off the individual investor - the "customer." In the 1930s he joined Benjamin Graham's former firm, Newburger Loeb, upstairs in the same building as the soon-to-be monumental Graham Newman partnership.
Schiller became a customer's man, equivalent to today's registered representative, who gave advice to the clients in the trading room where the ticker was located. His first-hand knowledge of the inherent conflict and abuse of that role - money was made on commissions - and the investing devastating of the 1930s, as well as a combination of his academic and scholarly bent, led to his specialization in research about investment risk.
Building on the public utility and railroad reorganizations of the 1930s, Schiller used his own trade record files to create the field of special situations, with no colleagues in the field, and rose to be Director of Research at the firm.
The mind that took special situations to a whole new level has never received his due. Public utility and railroad reorganizations, arbitrage/hedging, and distressed debt/bankruptcy were all known in a small circle, including Graham, Cy Lewis and Gus Levy, and Max Heine, but Schiller expanded special situations to rights offerings/oversubscriptions, spinoffs, and more. Obsessively private and academic, he worked out of the investing limelight.
We are republishing his five books, published from 1955 to 1966, to bring back his extraordinary work and give him his due. Each book includes modern case studies to show how the techniques apply today.
Should you have any anecdotal or documentary information - anything at all, no matter unimportant you may think it is - concerning Schiller and/or his circle in the 1940s and 1950s of Cy Lewis, Gus Levy and Hans Jacobson, Schiller's years at Newburger, his move from Newburger in the 1950s and then to Santa Barbara in the 1960s, please Contact Us. There is little material on his professional life.
- You can trace a line from Schiller to Klarman.
- One of Schiller's books appeared in a bookstore window next to Graham and Dodd's Security Analysis.
- His books were printed in typescript. Unbelievable.
- He did not discuss his work with his family.
- They had no idea - the books were on the shelves, but no one knew the gold therein.
- They are still kind of surprised that all of this is going on!