Legendary value investors' secrets
January 27, 2023
“You only learn who has been swimming naked when the tide goes out…” – Warren Buffett (letter to Berkshire Hathaway shareholders in FY2007) P/S Full quote: “As house prices fall, a huge amount of financial folly is being exposed. You only learn who has been swimming naked when the tide goes out – and what…
Read More about Who has been swimming naked?“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?“A climate of fear is your friend when investing; a euphoric world is your enemy.” – Warren Buffett (2013 letter to Berkshire Hathaway shareholders)
Read More about A climate of fear is your friend“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“A bull market is like sex. It feels best just before it ends.” – Barton Biggs. (Note: Warren Buffett, in his 2013 letter to Berkshire Hathaway shareholders, was quoting the late Barton Biggs.) P/S Barton Biggs (November 26, 1932 – July 14, 2012) was a money manager said to be best known for accurately predicting…
Read More about A bull market is like sex“In my opinion, investment success will not be produced by arcane formulae, computer programs or signals flashed by the price behavior of stocks and markets. Rather an investor will succeed by coupling good business judgment with an ability to insulate his thoughts and behavior from the super-contagious emotions that swirl about the marketplace.” – Warren…
Read More about Warren Buffett on investment successBenjamin Graham (May 8, 1894 – September 21, 1976), the father of value investing, in his book, The Intelligent Investor, summed up the secret of sound investment in three words: margin of safety. Warren Buffett, Benjamin Graham’s most famous disciple, explained his mentor’s margin of safety concept this way (Source: The Superinvestors of Graham-and-Doddsville by…
Read More about Margin of Safety: Secret of Sound Investment“For it is, so to speak, a game of Snap, of Old Maid, of Musical Chairs — a pastime in which he is victor who says Snap neither too soon nor too late, who passed the Old Maid to his neighbour before the game is over, who secures a chair for himself when the music…
Read More about A game of Snap, of Old Maid, of Musical Chairs – John Maynard Keynes“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 Warren Buffett on Benjamin Graham’s margin of safetyIn a section of his letter to Berkshire Hathaway shareholders on February 28, 2014 for FY2013, Warren Buffett shared “Some Thoughts About Investing” (Post: Investment is most intelligent when it is most businesslike) . He also shared more about Benjamin Graham, his teacher and friend, and about Benjamin Graham’s book, The Intelligent Investor . “Ben’s ideas…
Read More about Benjamin Graham’s The Intellingent Investor Chapter 20 (Margin of Safety As The Central Concept Of Investment)