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A small business can use the protection-based approach to grow by focusing on reducing risk and ensuring sustainable returns. This can be achieved by investing in assets that are undervalued, providing a margin of safety against unfavorable developments. The business should also focus on conservatively financing its operations to avoid over-leveraging. This approach ensures that the business has a solid foundation, which can help it weather economic downturns and grow steadily over time.
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This book will not teach you how to beat the market. However, it will teach you how to reduce risk, protect your capital from loss and reliably genera...
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Graham advocates for a protection-based approach that does not try to time the market. Value investors should identify and invest in large, conservatively financed companies whose present value (as estimated by tangible assets) is substantially below their current stock prices. A protection-based approach creates a margin to absorb unfavorable developments in the future. The focus is on ensuring tangible value in purchasing the stock at current prices
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