Profile image
By Gannon on Investing (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

Ben Graham Defines an Investment

Tuesday, November 29, 2016 0:05
% of readers think this story is Fact. Add your two cents.

(Before It's News)

An investment operation is one which can be justified on both qualitative and quantitative grounds.

An investment operation is one which, upon thorough analysis, promises safety of principal and a satisfactory return.

Thorough Analysis: The study of the facts in the light of established standards of safety and value.

Safety: Protection against loss under all normal or reasonably likely conditions or variations.

Satisfactory Return: Any rate or amount of return, however low, which the investor is willing to accept, provided he acts with reasonable intelligence.

(Security Analysis, 1940)

To have a true investment there must be present 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.

(The Intelligent Investor, 1949)

Key Terms

  • Operation
  • Qualitative
  • Quantitative
  • Thorough Analysis
  • Safety of Principal
  • Satisfactory Return
  • Margin of Safety
  • Figures
  • Persuasive Reasoning
  • Body of Actual Experience

Talk to Geoff about Ben Graham’s Definition of an Investment



Source: http://www.gannononinvesting.com/blog/2013/8/23/ben-graham-defines-an-investment

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories
 

Featured

 

Top Global

 

Top Alternative

 

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.