In a May 2025 appearance on Morningstar’s The Long View podcast, Wall Street Journal columnist Jason Zweig provided crucial insights for investors facing significant market uncertainties. As global markets navigate President Trump’s extensive tariff policies, Zweig highlighted the risks of making substantial portfolio adjustments without certainty that fundamental rules have shifted.
Zweig’s insights coincide with his preparation of the newest edition of Benjamin Graham’s The Intelligent Investor, a book Warren Buffett regards as the best on investing. In today’s volatile environment, where policy changes can cause rapid market fluctuations, Graham’s principles remain highly pertinent.
During the interview, Zweig emphasized the pitfalls of emotional decision-making, noting that changes made under stress are often regretted. This underscores the enduring relevance of Graham’s teachings. Here, we explore ten key lessons from The Intelligent Investor relevant to today’s markets.
1. **Invest with a Margin of Safety**: Graham’s core principle is critical in uncertain times. Investors should avoid paying full value for securities, especially when tariff policies threaten corporate earnings. As Zweig notes, the margin of safety acts as a defense against potential misjudgments.
2. **Distinguish Between Investing and Speculating**: In an era of social media-driven trading, Graham’s distinction between investment, which requires analysis and reasonable returns, and speculation, based on market sentiment, is vital. The temptation to speculate on tariff outcomes rather than focus on business fundamentals is considerable.
3. **The Market Serves You, Not Instructs You**: Graham’s Mr Market analogy remains relevant. Investors should not feel compelled to act on market swings driven by tariff announcements, but rather view them as opportunities.
4. **Be a Defensive Investor Unless Truly Skilled**: Graham advised most investors to adopt a defensive approach, maintaining diversified portfolios over the long term. Zweig echoed this, noting the complexity of accurately predicting market changes, especially regarding tariffs.
5. **Price and Value Are Not the Same**: Graham emphasized that price reflects sentiment, while value is based on business fundamentals. Even during policy-driven volatility, intrinsic value remains tied to a company’s competitive position and management.
6. **Avoid Herd Mentality**: Zweig’s warning about social media echo chambers highlights the danger of confirmation bias. Graham’s contrarian strategy—buying from pessimists and selling to optimists—requires resisting social pressures.
7. **Self-Discipline Trumps IQ**: Graham identified emotional discipline as crucial. Zweig discussed how digital platforms exploit emotional weaknesses, leading to more frequent trading and lower returns. The influence of social dynamics further underscores the importance of maintaining independence.
8. **Focus on Long-Term Results**: Managing risk, not avoiding it, is key. Investors should prioritize companies with durable advantages that can adapt to policy changes over time.
9. **Diversification is Essential**: Graham’s advice to diversify among quality companies mitigates risks associated with specific sectors affected by trade policies, maintaining exposure to growth.
10. **Stick to a Rational Plan**: Graham advocated for a consistent strategy. Zweig suggested gradual adjustments for those feeling overexposed, avoiding hasty changes driven by stress.
The wisdom of The Intelligent Investor endures because it addresses fundamental human nature rather than specific market conditions. Historical evidence supports Graham’s approach over emotional reactions to headlines. Despite crises, disciplined investors focusing on fundamentals have thrived.
In today’s connected markets, Graham’s emphasis on self-control is increasingly relevant. Zweig’s assurance that emotional changes lead to regret, aligned with Graham’s timeless wisdom, offers a framework for clear decision-making under pressure. Graham’s principles have guided investors through decades of market turbulence, suggesting their continued relevance in future uncertainties.
