: This is the buffer between the purchase price and intrinsic value. Browne echoes Graham’s advice to aim for buying a dollar's worth of assets for 66 cents.
: Browne emphasizes that price is what you pay, but value is what you receive. Stocks should be bought when they are "on sale," much like buying groceries or clothes. The Little Book of Value Investing
: This is the "true" worth of a company based on its assets and earnings. Investors should only buy when the market price is far below this figure. : This is the buffer between the purchase
: To insure against individual company failures, Browne recommends holding a broadly diversified portfolio across different industries. Key Analytical Metrics The Little Book of Value Investing