Graham coined the term "margin of safety."
Benjamin Graham
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.
Understanding the margin of safety is crucial for investors to minimize risks and make sound investment choices.
Related concepts
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
Benjamin Graham's Mr. Market allegory teaches about market irrationality
Benjamin Graham's Mr. Market allegory teaches that markets can be irrational, with prices fluctuating wildly independent of intrinsic value
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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