A Quote by Benjamin Graham

There is a close logical connection between the concept of a safety margin and the principle of diversification.

Benjamin Graham

Quote Topics

Between Close Concept Connection Diversification Logical Margin Principle Safety

Quote Author

Benjamin Graham
American - Economist
May 8, 1894 - September 21, 1976

Edge also implies what Ben Graham....called a margin of safety. You have a margin of safety when you buy an asset at a price that is substantially less than its value. As Graham noted, the margin of safety 'is available for absorbing the effect of miscalculations or worse than average luck.' ...Graham expands, "The margin of safety is always dependent on the price paid. It will be large at one price, small at some higher price, nonexistent at some still higher price."

Michael Mauboussin

The best argument for mutual funds is that they offer safety and diversification. But they don't necessarily offer safety and diversification.

Ron Chernow

To have a true investment, there must be a true margin of safety. And a true margin of safety is one that can be demonstrated by figures, by persuasive reasoning, and by reference to a body of actual experience.

Benjamin Graham

If you understood a business perfectly and the future of the business, you would need very little in the way of a margin of safety. So, the more vulnerable the business is, assuming you still want to invest in it, the larger margin of safety you'd need. If you're driving a truck across a bridge that says it holds 10,000 pounds and you've got a 9,800 pound vehicle, if the bridge is 6 inches above the crevice it covers, you may feel okay, but if it's over the Grand Canyon, you may feel you want a little larger margin of safety.

Warren Buffett

It is our argument that a sufficiently low price can turn a security of mediocre quality into a sound investment opportunity - provided that the buyer is informed and experienced and he practices adequate diversification. For, if the price is low enough to create a substantial margin of safety, the security thereby meets our criterion of investment.

Benjamin Graham

There is no logical connection between flying and laying eggs.

Gilbert K. Chesterton

High leverage is unsafe, not just for a company but the entire economy... LBOs are reducing the safety. Management loses the power to do many things. It has no margin for error and less margin for additional risk.

Franco Modigliani

There are three important principles to Graham's approach. [The first is to look at stocks as fractional shares of a business, which] gives you an entirely different view than most people who are in the market. [The second principle is the margin-of-safety concept, which] gives you the competitive advantage. [The third is having a true investor's attitude toward the stock market, which] if you have that attitude, you start out ahead of 99 percent of all the people who are operating in the stock market - it's an enormous advantage.

Warren Buffett

The connection between art and Christ is like the connection between sunlight and the sun. It is, in fact, the connection between Sonlight and the Son.

Peter Kreeft

The difference between the price we pay for a stock and its liquidation value gives us a margin of safety. This kind of investing is one of the most effective ways of achieving good long term results.

Peter Cundill

Environmentalism is a personal thing - but it's also a planetary thing. It's about making deep connections. But it's also about recognizing the very human connection between species diversification and ourselves.

Stuart Franklin

The distinction between East and West is that the Western novel is very organized, it's very logical, there's a logical progression, there's a chronological progression, and there's a safety in that. Whereas if you look at Japanese film, it is made up of collage or bricolage, it is made up of lists, and suddenly when you stand back from the lists you begin to see the pattern of a life.

Donald Richie

No matter that astronauts and cosmonauts had perished in precisely designed and carefully tested machines. Solid engineering could always provide a safety margin, because the engineers believed, there was complete safety in numbers.

William E. Burrows

But we agree with the NTSB that if we eliminated the thrust- reverser calculation, it would be an extra margin of safety. Airport capacity and airline efficiency are important, but safety is the most important thing.

Laura Brown

The principal difference between an adventurer and a suicide is that the adventurer leaves himself a margin of escape (the narrower the margin the greater the adventure)