Benjamin Graham, David Dodd
Discover the foundational text of value investing that taught Warren Buffett how to separate market noise from business reality. Learn to calculate intrinsic value and protect your wealth from speculative crashes.
An investment operation is one that, upon thorough analysis, promises safety of principal and an adequate return, while any operation lacking these guarantees is merely speculation.
Intrinsic value is not a precise number but a reasonable range justified by concrete facts like assets, earnings, and dividends rather than fleeting market sentiment.
Investors must demand a substantial gap between a security's intrinsic value and its market price to create a margin of safety against unpredictable losses.