Only by insisting on what Graham called the “margin of…
““Only by insisting on what Graham called the “margin of safety”—never overpaying, no matter how exciting an investment seems to be—can you minimize your odds of error.””
About This Quote
Source Book: The Intelligent Investor, 1949
Investors should always buy at a price below intrinsic value, using a safety margin to avoid costly errors.
In simple terms: Buy cheap, avoid overpaying.
Key Takeaway
Apply a margin of safety in all investments.
Themes
investment discipline
risk management
value investing
Mood
cautious
pragmatic
Type
advisory
educational
When to use this quote
- stock selection
- real estate
- venture capital
- personal finance
Key Concepts
margin of safety
intrinsic value
Questions to Reflect On
- What price would you consider a safe margin?
- How do you assess intrinsic value?
A Different Perspective
Market hype can cloud judgment despite safety margins.