Graham’s Class 1 Truths and Class 2 Truths
Posted in Investment, Quote on Dec 7th, 2008
Class 1 truths were absolutes. Class 2 truths became truths by conviction.
If enough people thought a company’s stock was worth X, it became worth X until enough people thought otherwise. Yet that didn’t affect the stock’s intrinsic value - which was a Class 1 truth.
- P 147, The Snowball
-- Related posts:
