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1.
According to Graham, what are the features of an investment operation?
Thorough analysis, safety of principal, and an adequate return. According to Graham, an investment operation must involve thorough analysis, safety of principal, and an adequate return; otherwise the operation is speculative.
2.
A business's intrinsic value is its stock market price.
False. The intrinsic value is its actual worth, which can be learned from its financial statements.
3.
According to Benjamin Graham, what must an investor do before purchasing a stock?
Ensure the current price allows for a margin of safety. Graham thought it was absolutely critical to buy stocks or bonds only when prices offered a margin of safety. Otherwise, you would not be protected against unforeseen events that may lead to permanent capital loss.
4.
Famous investor Benjamin Graham viewed fluctuations in stock prices as _______.
Opportunities to buy and sell wisely. He cautioned against making too much worry out of price fluctuations.
5.
Which statement would Benjamin Graham most agree with?
"Investing is most intelligent when it is most businesslike." Since stocks represent partial ownership of real businesses, the same behavior that makes sense in the business world makes sense in the stock market.
