These are 3 Buying Principles principles distilled from Benjamin Graham's writing and public remarks. Use them as a decision checkpoint: translate each rule into a yes/no test, write what evidence would change your mind, and set a review date before you act. When a rule feels vague, open the full principle page and capture the driver you can verify (cash flows, leverage, incentives, competitive edge). This is educational, not investment advice—double-check primary sources and fit every rule to your time horizon, risk budget, and constraints.
"Buy stocks of companies selling at less than their net current asset value — that is, below the value of current assets after deducting all prior obligations."
Buy below liquidation value for maximum safety.
Read Full Analysis →"There is a close logical connection between the concept of a safety margin and the principle of diversification. Even with a margin in the investor's favor, an individual security may work out badly."
Diversify to protect against individual stock risk.
Read Full Analysis →"Current price should not be more than 1.5 times the book value last reported. A moderately low ratio of price to book value is another criterion for the defensive investor."
Use price-to-book as a value screen for safety.
Read Full Analysis →Use this page as a workflow, not a collection of quotes. Pick 3–5 principles, translate each into a concrete check, and review your decisions on a fixed cadence. These are educational guardrails—always verify facts and match them to your own constraints.
Rehearse a scenario decision → ·Run a weekly toolkit → ·Browse all principles →
Graham taught at Columbia Business School for nearly three decades, where his students included Warren Buffett, who later called him the second most influential person in his life after his father. Market." Graham advocated for a disciplined, emotionally detac…
Benjamin Graham has 3 key principles on buying principles. The most important one is "Net Current Asset Value" — Buy stocks of companies selling at less than their net current asset value — that is, below the value of current assets after deducting all prior ob...
Benjamin Graham applies buying principles through several key principles including "Net Current Asset Value" and "Adequate Diversification". These principles guide practical investment decisions and have been tested across decades of market cycles.
Benjamin Graham's approach to buying principles is distinguished by a focus on long-term thinking and fundamental analysis. With 3 specific principles in this area, Benjamin Graham provides a comprehensive framework that investors at any level can study and apply to improve their decision-making.
Treat each principle as a hypothesis. Write the evidence you would need, collect it from primary sources when possible (filings, letters, transcripts), and note what would invalidate the conclusion. If you can’t define inputs and triggers, you’re not applying the rule—you’re quoting it.
Pick a cadence you can sustain (weekly or monthly) and review process signals first: whether you followed your checklist, respected your boundaries, and documented assumptions. Only then look at outcomes. The goal is fewer low-quality decisions, not perfect prediction.
