““Graham’s definition of investing could not be clearer: “An invest- ment operation is one which, upon thorough analysis, promises safety of principal and an adequate return.” 1 Note that investing, according to Graham, consists equally of three elements: • you must thoroughly analyze a company, and the soundness of its underlying businesses, before you buy its stock; • you must deliberately protect yourself against serious losses; • you must aspire to “adequate,” not extraordinary, performance.””
