Category Archives: Margin of Safety

Invest In Stocks With A Margin Of Safety To Reduce Risk And Enhance Returns – Seeking Alpha

Invest In Stocks With A Margin Of Safety To Reduce Risk And Enhance Returns – Seeking Alpha: Introduction

Of all of the many sound investing principles that legendary teacher and investor Ben Graham put forward, he believed that his concept of “margin of safety” was the most important of all. This investment lesson was so deeply ingrained into the mind of Ben Graham’s most famous student, Warren Buffett, that he created his two most important rules of sound investing. Rule number one: Never lose money. Rule number two: Never forget rule number one. Clearly, both of these renowned sages understood the importance of minimizing risk, especially when investing in equities. The following quote from Ben’s famous book The Intelligent Investor corroborates and summarizes my point:

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