Posted by qqq3 > 2019-01-30 14:42 | Report Abuse

good article, less people think to be a rubbish collector with margin of safety is the way to go.......

the word margin of safety has no place in equity investments, IMO.....

s= Qr....if the r is good and the Q is good, u ride the story for what it is.....

Posted by qqq3 > 2019-01-30 16:13 | Report Abuse

cigar butts investing is not the way to go

Posted by qqq3 > 2019-01-30 16:16 | Report Abuse

neither is trying to arbitrage your valuations vs market valuations.....

people who regularly go do such arbitrage have egos bigger than their brains....that is all......

Posted by 3iii > 2019-01-30 16:38 | Report Abuse

Graham’s investment in GEICO, to create wealth from stock market investing over time – Be prepared and wait for a high-quality business at reasonable price, stick with it over time till the business does well, then be humble to credit luck more than your skill for whatever success you achieve, and repeat this process if you get another fat pitch. Rest of the time, don’t act much. That will be your true skill.

Posted by 3iii > 2019-01-30 16:38 | Report Abuse

The way to win in the stock market, according to Charlie Munger, is to work, work, work, work and hope to have a few insights. The question is – how many insights do you need in your investing lifetime?

Not many, as Munger says (and Graham proved with GEICO) –

…you don’t need many in a lifetime. If you look at Berkshire Hathaway and all of its accumulated billions, the top ten insights account for most of it. And that’s with a very brilliant man — Warren’s a lot more able than I am and very disciplined—devoting his lifetime to it. I don’t mean to say that he’s only had ten insights. I’m just saying, that most of the money came from ten insights.

…you’re probably not going to be smart enough to find thousands in a lifetime. And when you get a few, you really load up. It’s just that simple.

Posted by 3iii > 2019-01-30 17:09 | Report Abuse

Another key lesson here is that of not selling your winning stock just because you think it has reached fair value or has gotten overpriced. Thank Graham for breaking this rule that he had himself practiced so strictly. GEICO started off as a value investment, but as the business grew, Graham held on and reaped the benefits over a 25-year period.

Posted by geary > 2019-01-30 17:26 | Report Abuse

Some people don't anyhow said things...U know GEICO nearly gone bankrupt n the owner committed suicide...Well why Graham n Buffett invested so much in it...n the rest is history. They are well prepared n disciplined...n did bought with huge Margin of Safety...n it started to grow again under a new CEO. Good luck...!!!

Posted by stockraider > 2019-01-30 17:30 |

Post removed.Why?