Benjamin Graham said, have a _*margin of safety*_ while investing.
He was referring to a *buy* price point.
Yes, he was undoubtedly right
But, I’ll add to it that
_*Margin of Safety*_ on a suitable investment increases with the _*HOLDING TENOR*_ of our investments. And probably, irrespective of the price point we invested (unless, the investment made is absolutely worthless in the first place).
Yes, they’ll go down when such black swan events hit us.
Yes, they’ll go down when there is pandemonium & panic.
Yes, they’ll go down when there is fear gripping all around.
Yes, they’ll go down when the markets probably reflect the 6 or 9 month reality down the time.
But, _the Longer we hold our investments, the lesser is the damage to our capital_
Gains can come down (temporarily), but by the time it comes to hits the initial invested capital….it’s going to be really tough and long.
The recent events in some debt funds exactly illustrate this point (for someone invested in 2011 to 2017)
Equities or any other asset too, run with the same logic.
_*BUY for LONG*_
_*HOLD for LONG*_