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Benjamin Graham's Principles

Overview

Known as the father of value investing and Warren Buffett's teacher.

Style

Margin of safety, net-net stocks, investor psychology

Firm

Graham-Newman Partnership

Period

1894-1976

Benjamin Graham

Principles

Repeatable rules that beginners can study and adapt.

Applicable principles

Separate market price from intrinsic value.

Require a meaningful margin of safety before buying.

Do not let short-term volatility define decision quality.

Investing is analysis, not guessing crowd emotion.

Turn these principles into a pre-investment checklist. If an idea cannot pass the checklist, staying out is often better than forcing action.