Benjamin Graham's Fundamental Principles
Another name for Benjamin Graham is the "Father of value investing." I think, he created guiding principles that are still relevant today. Every investor must know these core fundamental principles. They are:
- When investing, always keep a margin of safety in mind.
- Profit from volatility by expecting it.
- Determine the type of investor you are.
Investing, according to Benjamin Graham, entails keeping the following crucial criteria in mind:
- In-depth examination of a company's operations.
- On deliberately, protect yourself from big losses.
- Focus on achieving adequate outcomes rather than extraordinary performance.
What Benjamin Graham says about stock?
"Stock Price in the future depends upon the business behind them, which is doing well or poorly, nothing more and nothing less," Benjamin Graham usually says about stocks.
Here, he attempts to illustrate that future stock price relies entirely on the company's operations. So you always prioritize company business operations before selecting a stock. The stock selection is based on the stock price and the company's operations.
He also says "You cannot predict the behavior of the markets you must learn how to predict and control your own behavior."
It simply implies that stock price estimates are always subject to uncertainty. Because you cannot predict how the markets will respond, you must learn to anticipate and govern your own behavior. When making an investment decision, pay attention to your own behavior.
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| Benjamin Graham (1894-1976) |
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on Investment or recommend buying and selling any stock
