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1.
According to Ben Graham, where should we turn to find a business's intrinsic value?
The business's financial statements. The financial statements, especially the balance sheet and income statement, will provide information needed to find the business's intrinsic value.
2.
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.
3.
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.
4.
According to Benjamin Graham, why should investors use a 'margin of safety' when settling on a price to pay for a company's stock?
The estimates of the stock's intrinsic value are not likely to be completely accurate. Because it involves so many assumptions, such estimates are not likely to be completely accurate. Thus the need for a margin of safety.
5.
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.
