Planning is important, but the most important part of every plan is to plan on the plan not going according to plan.
If it costs five hundred million to build a steel mill and I can buy one for fifty million, that is a ninety percent margin of safety.
We want to buy a dollar of assets for 50 cents. That's it. Everything else is details.
The key to investing is not predicting the future. It's buying assets at a discount so large that even if you're wrong about the future, you still win.
Benjamin Graham taught me that the key to investing is buying a dollar for fifty cents.
By choosing stocks with a substantial difference between price and value, a wide margin of safety is created. The lower the purchase price relative to value, the lower the risk. Contrary to popular belief, by decreasing risk, this method increases potential reward.