I think it's interesting how old ideas can become new again. Graham's ideology (as portrayed in the article at least) seems to be along the lines of Edison's.

Edison Quotes:

"I never perfected an invention that I did not think about in terms of the service it might give others. I find out what the world needs, then I proceed to invent."

"Genius is one per cent inspiration and ninety-nine per cent perspiration. Accordingly, a 'genius' is often merely a talented person who has done all of his or her homework."

"Pretty much everything will come to him who hustles while he waits. I believe that restlessness is discontent, and discontent is merely the first necessity of progress. Show me a thoroughly satisfied man and I will show you a failure."

One could make the argument that the "startup factories" of today are analogous to the invention labs of yesteryear. Either way, it seems like it was a winning formula back then and continues to work to this day.