The investing principles for those who want to get started was covered before here: links: Get started on Investing or The basics principles of Investing or What is an Investment. But those principles do not hold interest for a smart and intelligent investor. We bring to you some timeless investment principles for a smart investor.

The first timeless principle for investing is:

Always Invest with a Margin of Safety: Margin of safety is the principle of buying a security at a significant discount to its intrinsic value, which is thought to not only provide high-return opportunities, but also to minimize the downside risk of an investment. In simple terms. For example, the goal is to buy assets worth Rs 100 for Rs 50.

Benjamin Graham and David Dodd, founders of value investing, coined the term margin of safety in their seminal 1934 book, Security Analysis. The term is also described in Graham's The Intelligent Investor. Graham said that "the margin of safety is always dependent on the price paid"

This is also the underlying principle for Value Investors. This concept is very important for investors to note, as value investing can provide substantial profits once the market inevitably re-evaluates the stock and ups its price to fair value.

The safety net of buying an underlying business for much less than it is worth was the central theme of Graham's success. When chosen carefully, Graham found that a further decline in these undervalued stocks occurred infrequently. While many of Graham's students succeeded using their own strategies, they all shared the main idea of the "margin of safety."

It also provides protection on the downside if things don't work out as planned and the business falters.

Stay tuned for more timeless investment principles for smart and intelligent investors

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