A Joosr Guide to Intelligent Investor by Benjamin Graham

imagine that Mr Market is your business partner and together you own a company. Now Mr Market wants to buy you out and every day he comes to you with an offer at a price he specifies. Since he is a very emotional guy, his price may be well over the fundamental value of the company’s shares or well below it.

intelligent investor is happy with adequate returns and keeps their risk under control so that their investment capital is not wiped out. They make sure that they are buying at a price that can provide them with great potential for returns. They also know that they need to maintain a margin of safety, which will cushion their investment against price dips.