In this edition we re-examine one of the central tenets of value investment - The Margin Of Safety Principle. This principle was put forward by Benjamin Graham to insure against mistakes or errors of judgement in the selection of stock. The principles demands a discount to intrinsic value to create a buffer zone against the risks associated with being wrong. In this episode we shall look in closer detail at the principle and consider what this margin should be in percentage terms.

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In this edition we take a look at dividend policy and the habit that many businesses have fallen into of retaining earnings when it is not always in the shareholders best interest for them to do so. We consider why many businesses and management teams like to retain earnings rather than pay them out as dividends and why many investors instinctively believe that this is in their best interest.

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In this edition we look at some of the common traits shared by the typical value investor. One of the main qualities seems to be our need to obtain value for money whether that be in the purchase of stocks at less than their intrinsic value or when buying a multi pack of Coca-Cola. We will consider some aspects of character that seem to be ingrained in value investor and cannot be taught.

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