GAFM GLOBAL ACADEMY OF FINANCE AND MANAGEMENT  ®

1.  Selectivity: Enterprising investors should be highly selective in their stock choices and should conduct thorough research.

2.  Market Fluctuations: Market fluctuations present opportunities for enterprising investors to buy undervalued stocks.

Chapter 20: Margin of Safety as the Central Concept of Investment  

1.  Margin of Safety Reiterated: Graham reaffirms the concept of a margin of safety as the cornerstone of intelligent investing.

2.  Risk Management: A margin of safety is the investor's primary tool for managing risk and minimizing the chance of permanent capital loss.

Intelligent Investor  Chapter Summaries

Chapter 1: Investment vs. Speculation Graham begins by distinguishing between investment and speculation. He defines investment as a careful, rational approach focused on safety and satisfactory returns, while speculation involves a more speculative, often emotional, pursuit of capital gains.

Chapter 2: The Investor's Dilemma This chapter discusses the emotional and psychological challenges faced by investors, including market volatility and the temptation to speculate. Graham emphasizes the need for a disciplined and rational approach.