True investing is based on the relationship between price and value. Brokers, using terms such as "marketability" and "liquid- ity", sing the praises of companies with high share turnover those who cannot fill your pocket will confidently fill your ear.
The certainty with which management can be counted on to channel the reward from the business to the shareholders rather than to itself. We believe this margin-of-safety principle, so strongly empha- sized by Ben Graham, to be the cornerstone of investment success.
An investor needs to do very few things right as long as he or she avoids big mistakes. Market tell you what the value of a particular stock is, do your own research and make your own value assessment. Those following this path are sure to beat the net results after fees and expenses delivered by the great majority of investment professionals.
Graham advises readers to not let Mr. It is apt simply to hurt your results and increase your risk.
I call this the "cigar butt" approach to investing. Leverage will move things along faster, but also incurs unnecessary risk. Please read my disclosure for more information. Every year, Buffett writes a letter to Berkshire Hathaway shareholders.
Charlie understood this early; I was a slow learner. What we have learned is to avoid them.