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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: bruwin who wrote (57622)	7/30/2016 8:07:15 AM
From: Graham Osborn	Respond to of 78763

Sorry, bruwin. I just meant that Graham regarded purchase/ sale timing as a "speculative" activity, including shorting and buying on margin (I did finally locate the exact passage in Security Analysis). The idea of the margin of safety originates from the inability to time your way in or out of a stock. Not to mention that from a practical standpoint, Graham-type "neglected" issues tend to be smaller-cap stocks which (1) have varying degrees of liquidity (2) may move quickly. As I think we'd agree based on examples like TCPI/ MHR, buying stocks that necessitate regularly dodging bullets is not really compatible with the margin-of-safety principle. Volatility is only good if you have good reasons to think the market is being illogical.