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) :
- Determining the appropriate intrinsic value of a business.
- Determining the appropriate margin of safety.
- Determining the scope of an investor’s circle competence.
- Determining how much each security to buy.
- Determining when to sell a security.
- Determining how much to pay on a mispriced asset.
- Determining wheater the quality of business should be considered.
- Determining the business in whole or in part
I wonder how much this relates to investing in a startup as well.