Margin of Safety Explained

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In this first episode of 2026, Dave and Andrew revisit The Intelligent Investor by Benjamin Graham and explain why it’s still worth your time—even if some parts feel dated. They break down the timeless principles Buffett has praised for decades, especially the ideas that help you stay rational when the market (and your emotions) get loud.

They also get practical: what “investing vs. speculating” actually means, how to learn a business if you’re serious about picking stocks, and why inflation quietly erodes your buying power.

Key Topics Covered:

• Why The Intelligent Investor still matters (and why Buffett points to Chapters 8 and 20)

• Investing vs. speculating

• How to learn a business (10-Ks + Investor Relations) and why reading matters

• Inflation: how it erodes buying power and affects investors and businesses

• Mr. Market & margin of safety:

Timestamps:

00:33 – Why The Intelligent Investor is still timeless

01:38 – Why it’s a “foundation book” for mindset and emotional control

02:32 – Investing vs. speculating

03:48 – Analysis/business = investing; price movement = speculating

06:21 – How to learn a business

08:12 – Investor Relations pages

08:41 – If you don’t like reading

09:22 – Index funds/ETFs as a legit alternative

11:35 – Inflation basics

14:15 – Risk/return ladder

16:11 – Inflation’s “double-edged sword” for businesses (revenue vs margins)

19:01 – Pricing power example

21:36 – Declines are normal and volatility is part of the game

25:33 – Mr. Market explained

33:34 – Margin of safety

Resources Mentioned:

The Value Spotlight Newsletter: https://einvestingforbeginners.com/value-spotlight-newsletter/

Have questions or want your story featured? Email the show at newsletter@einvestingforbeginners.com or comment below. Your feedback shapes the podcast!

Remember, invest with a margin of safety—emphasis on the safety. Have a great week, and we’ll talk to you next time.

Timestamps are generated by artificial intelligence, and are not 100% accurate depending on the platform used for listening.

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