Benjamin Graham discovered that instead of following the herd and buying what is popular, investors would achieve far better results if they buy undervalued stocks of strong, conservatively financed companies, which are currently out of favor. Graham called these bargain stocks, or bargains, because the investor was able to buy them for less than the real value of the company’s net tangible assets. The difference between the market price and the enterprise’s real value is called a margin of safety. When Mr. Market realizes his mistake and lifts the stock price to more reasonable levels, the investor earns a profit. That is the real beauty of value investing.