Value Investing

While reading Charlie Munger: The Complete Investor, I got to know about Benjamin Graham. He is widely known as the “father of value investing.”

The crux of value investing (excerpts from the book) :

  1. Determining the appropriate intrinsic value of a business.
  2. Determining the appropriate margin of safety.
  3. Determining the scope of an investor’s circle competence.
  4. Determining how much each security to buy.
  5. Determining when to sell a security.
  6. Determining how much to pay on a mispriced asset.
  7. Determining wheater the quality of business should be considered.
  8. Determining the business in whole or in part

I wonder how much this relates to investing in a startup as well.