"Another leading prudential legacy from [[Ben Graham]] is his margin-of-safety principle. This principle holds that **one should not make an investment in a security unless there is a sufficient basis for believing that the price being paid is substantially lower than the value being delivered**. Buffett follows the principle devotedly, noting that Graham had said that if forced to distill the secret of sound investment into three words, they would be: margin of safety." ([Location 372](https://readwise.io/to_kindle?action=open&asin=B01J2SLA5O&location=372)) *** **Tags** — [[quotes]], **See Also** -- [[Warren Buffett]], [[Charlie Munger]] **Source** — [[202308141129 — B — The Essays of Warren Buffett]]