Three secret words of sound investment

Three secret words of sound investment, from the legendary investor Benjamin Graham, are:

Margin of Safety

These are wise words, if not the most wise words, for all seasons, I think.

When it comes to managing money, in practical terms, the key question is:"what is the downside ?"

If the unthinkable happens, can you weather the storm ?

These three secret words of sound investment provide a simple, but profound approach to managing risk: to maintain a margin of safety !

That's why I am always talking about diversifying, hedging, and saving. That way the consequences of being wrong on the trading decisions may be financially painful but never catastrophic.