"The margin of safety is always dependent on the price paid."
— Benjamin Graham
The Margin Of Safety Is Always
The margin of safety is always dependent on the price paid.
About this quote
From The Intelligent Investor (1949), Chapter 20, the book's concluding chapter on the margin of safety. Graham's core insight was that the safety of any investment depends entirely on the price paid relative to intrinsic value: even a wonderful business becomes a poor investment if purchased at too high a price. Warren Buffett later summarized the idea as: "Price is what you pay; value is what you get."
Source
The Intelligent Investor, Chapter 20 (1949)
