Concepts Quote by Benjamin Graham
“There is a close logical connection between the concept of a safety margin and the principle of diversification.”
About This Quote
Source Book: The Intelligent Investor, 1949
Safety margins and diversification both protect investments from loss.
In simple terms: Diversify and keep safety buffers.
Key Takeaway
Build diversified portfolios with buffers.
Themes
investment
risk management
diversification
security
Mood
cautious
analytical
Type
financial
educational
When to use this quote
- stock selection
- retirement planning
- asset allocation
- risk assessment
Key Concepts
financial theory
portfolio construction
risk mitigation
Questions to Reflect On
- Do you have a safety margin in your investments?
- How diversified is your portfolio?
A Different Perspective
Diversification alone cannot eliminate all risk.
