Intelligent Investment Today - The Warren Buffett Way

Benjamin Graham on Bonds: Why Every Portfolio Needs Them

David Coombs

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0:00 | 15:16

Benjamin Graham is widely known as the father of value investing and the mentor to Warren Buffett. Most investors associate Graham with undervalued stocks, intrinsic value, and the famous concept of the margin of safety.

But Graham believed intelligent investing involved much more than stock selection.

In this episode of Intelligent Investment Today, we explore Benjamin Graham’s views on bonds — a crucial but often overlooked component of a well-balanced portfolio.

We discuss:

• What bonds actually are and how they work
 • Why Benjamin Graham believed bonds provided stability and protection
 • The key advantages and disadvantages of bonds compared with stocks
 • Graham’s famous asset allocation rule — the 25% to 75% portfolio balance
 • Why bonds can help investors remain disciplined during market downturns

Drawing on the principles outlined in The Intelligent Investor by Benjamin Graham, this episode explains why bonds were never just an afterthought in Graham’s philosophy — they were a cornerstone of intelligent investing.

If you want to build a portfolio designed not only for growth but also resilience, this episode will help you understand why Graham believed balance between stocks and bonds is essential.

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