
Graham coined the term "margin of safety."
Graham coined the term "margin of safety."
By focusing on the margin of safety, investors can make more informed decisions, protecting their capital and achieving long-term gains. This approach aligns with Graham's emphasis on independent thinking and emotional detachment.
Remember this
Understanding the margin of safety is crucial for investors to minimize risks and make sound investment choices.
Text adapted from Wikipedia, licensed under CC BY-SA 4.0.
Graham number
Why pay too much for a stock?
Glossary of contract bridge terms
Margin of safety principle: Buy below intrinsic value
Value theory
Graham emphasizes intrinsic value as a company's true worth based on fundamentals
Systematic
Systematic risk affects the entire market
Wall Street crash of 1929
Wall Street crash of 1929 triggered the Great Depression
Labor theory of value
Value = Labor required for production
Educational content, not financial advice.
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