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3. Margin of Safety: The margin of safety concept becomes even more
critical for enterprising investors as they actively select stocks.
4. Diversification: Diversification remains essential, but enterprising
investors can be more selective in their choices.
5. Caution in Speculative
Issues: Even for enterprising
investors, avoiding speculative stocks or situations with significant risk is emphasized.
Chapter 7: Portfolio Policy for the Enterprising Investor: The Positive
Side
1. Quantitative Analysis: Graham introduces quantitative analysis techniques,
such as price-to-earnings ratios, as tools for evaluating stocks.
2. Earnings and Dividends: Focus on companies with consistent earnings and
dividend records.
3. Intrinsic Value: Calculate the intrinsic value of a stock to determine
its investment worthiness.
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