The Graham Rule

The Graham Rule, named after investor Benjamin Graham, emphasizes the importance of thorough research and analysis before making investments. It suggests that an investor should only invest in companies they fully understand, including their business model, industry position, and financial health. This principle encourages caution, advising individuals to avoid speculation or investing in businesses they know little about, as this can lead to unnecessary risks. Essentially, it advocates for informed and prudent decision-making in investing.