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Graham's principles

Graham's principles, developed by Benjamin Graham, focus on intelligent investing by emphasizing value over speculation. Investors should analyze a company's fundamentals—such as earnings, assets, and financial health—to determine its intrinsic value. The goal is to buy stocks when they are undervalued compared to their true worth, providing a margin of safety against errors or unforeseen declines. This disciplined approach aims to minimize risk and maximize long-term returns, prioritizing careful research and patience over chasing market trends or short-term gains. In essence, Graham advocates for a cautious, analytical, and value-driven investment strategy.