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The Intelligent Investor Third Edition Knowledge Check

Test your mastery of the core principles.

Question 1 of 4
What is Benjamin Graham's primary criteria for an investment operation?
Explanation: Graham explicitly defines an investment operation as one that, upon thorough analysis, promises safety of principal and an adequate return.
Question 2 of 4
How should an intelligent investor view Mr. Market's daily price quotations?
Explanation: Mr. Market is your servant, offering daily prices that you can either accept when advantageous or ignore when absurd.
Question 3 of 4
What is the primary function of maintaining a 'margin of safety'?
Explanation: The margin of safety provides a protective cushion that absorbs miscalculations, bad luck, and unexpected market downturns.
Question 4 of 4
According to Benjamin Graham, what is the investor's worst enemy?
Explanation: Graham famously noted that the investor's chief problem—and worst enemy—is likely to be found right in their own mirror.