Legendary value investors' secrets
January 27, 2023
“An investment operation is one which, upon thorough analysis promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.” – Benjamin Graham (The Intelligent Investor) Giving his thoughts on Investment versus Speculation in his opening chapter in The Intelligent Investor, Benjamin Graham, the father of value investing, said: “Outright speculation…
Read More about Investment vs SpeculationLegendary value investor Warren Buffett is still dismissive of bitcoin as an investment. He laid out his latest thinking on the cryptocurrency in a recent interview with Yahoo Finance (Warren Buffett on buying bitcoin: ‘That is not investing’, April 28, 2018). “If you buy something like a farm, an apartment house, or an interest in…
Read More about Why Warren Buffett steers clear of bitcoinBenjamin Graham (1894-1976), the father of value investing, said in his book, The Intelligent Investor, that one choice for the defensive investor in stock selection would be to apply a set of standards to each purchase, to make sure that he obtains (i) a minimum of quality in the past performance and current financial position…
Read More about Stock selection for the defensive investor“To invest successfully over a lifetime does not require a stratospheric IQ, unusual business insights, or inside information. What is needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding that framework.” These words came from legendary investor Warren Buffett, the best known disciple of Benjamin Graham, the…
Read More about The Intelligent Investor“An investment operation is one which, upon thorough analysis promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.” Source: Benjamin Graham, “The Intelligent Investor”
Read More about What is speculation?“You don’t try and buy businesses worth $83 million for $80 million. You leave yourself an enormous margin (of safety). When you build a bridge, you insist it can carry 30,000 pounds, but you only drive 10,000-pound trucks across it. And that same principle works in investing. ” – Warren Buffett on what Benjamin Graham,…
Read More about Margin of safety“In the short run, the market is a voting machine; in the long run, however, it becomes a weighing machine.” – Benjamin Graham Legendary value investor Warren Buffett, the chairman of Berkshire Hathaway, once again cited the abovementioned maxim of Benjamin Graham in his FY2017 letter to shareholders. What is so endearing about this quote…
Read More about Warren Buffett: Don’t treat marketable common stocks as ticker symbols“An investment operation is one which, upon thorough analysis promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.” – Benjamin Graham, “The Intelligent Investor” Benjamin Graham, widely known as the father of value investing, said that “outright speculation is neither illegal, immoral, nor (for most people) fattening to the pocketbook”….
Read More about Investment versus Speculation“The years ahead will occasionally deliver major market declines – even panics – that will affect virtually all stocks,” Warren Buffett said in his FY2016 letter to Berkshire Hathaway shareholders. “No one can tell you when these traumas will occur – not me, not Charlie, not economists, not the media. Meg McConnell of the New…
Read More about Warren Buffett: Two things to remember during scary periodsIn Chapter 5 (The Defensive Investor and Common Stocks) of The Intelligent Investor, Benjamin Graham, the father of value investing, touched on various aspects of defensive investment, among which was dollar-cost averaging, an application of a “formula investment”. Elaborating, he said: “The New York Stock Exchange has put considerable effort into popularizing its ‘monthly purchase…
Read More about Benjamin Graham on dollar-cost averaging