Confronted with a challenge to distill the secret of sound investment into three words, we venture the motto, MARGIN OF SAFETY.
And a true margin of safety is one that can be demonstrated by figures, by persuasive reasoning, and by reference to a body of actual experience.
From 'Security Analysis', 1940 Edition, by Benjamin Graham and David Dodd:
Of more practical importance is the question whether or not investment can be successfully carried on in common stocks that appear cheap from the quantitative angle...
See interactive ebook on iBookstore