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Stocks 503: Great Investors: Benjamin Graham

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1.
A business's intrinsic value is its stock market price.
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False. The intrinsic value is its actual worth, which can be learned from its financial statements.
2.
According to Graham, what are the features of an investment operation?
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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.
3.
Famous investor Benjamin Graham viewed fluctuations in stock prices as _______.
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Opportunities to buy and sell wisely. He cautioned against making too much worry out of price fluctuations.
4.
According to Benjamin Graham, what must an investor do before purchasing a stock?
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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.
5.
Value investors look to buy assets that are priced _______.
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Below the assets' true value. These investors consider them good deals.