"The Intelligent Investor," one of my favorite books on investing written by Benjamin Graham, the father of value investing, and first published in 1949, is a classic that must be read by anyone serious about making money in the market (a less well-known book, "The Art of Speculation", by Philip L. Carret and first published in 1930 is right up there with The Intelligent Investor in my opinion, but a thorough analysis of the books' relative merits is for another day).
Perhaps if readers had to take a single concept away from Graham's book, it would be margin of safety. In his 1997 letter to investor, Warren Buffett compares the margin of safety when buying stocks to sound engineering:
Read the full article here.
When buying a clasic value stock. One must always look for a low market cap compared to a companies annual sales for example if a food company does one billion in annual sales but has a market cap of just one hundred million than the stock could have outstanding upside potential.
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