“There is a close logical connection between the concept of a safety margin and the principle of diversification.” PrinciplesConceptsConnectionsSafetyInvestingLogicalMarginsDiversification Author:Benjamin Graham
“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.” IfsEnoughTurnsOpportunitySoundQualityPracticeSecurityLowsArgumentSafetyInvestmentInvestingMediocreAdequateCriteriaMarginsBuyersDiversification Author:Benjamin Graham
“To suppose that safety-first consists in having a small gamble in a large number of different companies where I have no information to reach a good judgment, as compared with a substantial stake in a company where one's information is adequate, strikes me as a travesty of investment policy.” FirstsDifferentNumbersCompanyInformationPolicyJudgmentSafetyInvestmentInvestingStrikesStakesAdequateGambleLarge NumbersDiversificationGood JudgmentTravestySafety First Author:John Maynard Keynes
“Mutual funds have historically offered safety and diversification. And they spare you the responsibility of picking individual stocks.” IndividualResponsibilitySafetyFundMutualSparesDiversificationMutual Fund Author:Ron Chernow
“I don't think that a mutual fund that invests exclusively in biotech start-ups or invests exclusively in companies in Thailand offers any great safety or diversification.” ThinkingCompanyOffersSafetyFundMutualThailandDiversificationMutual FundBiotechGreat Safety Author:Ron Chernow
“The best argument for mutual funds is that they offer safety and diversification. But they don't necessarily offer safety and diversification.” OffersArgumentSafetyFundMutualWorkplaceDiversificationMutual FundWorkplace Safety Author:Ron Chernow