Graham’s value investing system is based on the premise that risk (the possibility of losing) is determined by the price at which you buy an asset. The higher the price you pay for an asset, the greater the risk that you will experience a loss of capital. If the price of a stock drops, risk goes down, not up. For this reason, the Graham value investor will often find that price decrease for a given stock is an opportunity to buy more of that stock. Buffett put it this way: “I’m going to buy hamburgers the rest of my life. When hamburgers go down in price, we sing the Hallelujah chorus in the
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