On Risk: The Intelligent Investor
By Jack Mixner
Warren Buffet wrote the Preface of this edition of the classic by Benjamin Graham. He points to two crucial chapters, numbers 8 and 20, as summarizing the philosophy of investing he follows. On investors and speculators: "The speculator's primary interest lies in anticipating and profiting from market fluctuations. The investor's primary interest lies in acquiring and holding suitable securities at suitable prices" (page 109).On margin-of-safety: “... 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" (page 282).
"Investment is most intelligent when it is most businesslike" (page 286).Strategic Implications
Investors acquire and hold investments with a true margin of safety in a businesslike manner. Operate your business the same way. ReferenceGraham, Benjamin. The Intelligent Investor A Book of Practical Counsel. Fourth Edition. Harper & Row, Publishers. 1973.