GAFM GLOBAL ACADEMY OF FINANCE AND MANAGEMENT  ®

5.  Margin of Safety: The idea of a margin of safety, introduced in Chapter 1, is reinforced as a fundamental principle for intelligent investing.

Chapter 3: A Century of Stock Market History  

1.  Market Cycles: Graham discusses the cyclical nature of the stock market, marked by periods of irrational exuberance and excessive pessimism.

2.  Market Crashes: He highlights major market crashes, including the Great Depression, to illustrate the severe consequences of speculative bubbles.

3.  Learn from History: Investors should study market history to recognize patterns and avoid repeating past mistakes.

4.  Value Investing: The principles of value investing, which focus on analyzing intrinsic value, become more critical during market downturns.

5.  Importance of Asset Allocation: Graham suggests that asset allocation should be based on market conditions and an investor's risk tolerance.

Chapter 4: General Portfolio Policy: The Defensive Investor