Voltaire: Don't be absurd

Voltaire, the Value Investor?

François-Marie Arouet (aka Voltaire) was a wise man, and here he speaks like a true value investor. Even the most seaworthy boat runs the risk of reefs, storms, and pirates. Consequently, no investor should ever feel they can be truly certain about an investment.

That’s why Benjamin Graham invented the concept of the margin of safety. He argued that investors should only purchase for significantly less than your estimate of the company's intrinsic value. Doing so creates a cushion that protects you against mistakes and plain bad luck.

A Millionaire Philosopher

Voltaire had a keen sense of irony and human folly. We remember him as a brilliant writer and an Enlightenment figure who battled against backward religions and monarchical power.

But there was also a keen financial mind under Voltaire's powdered wig. He was born into a moderately wealthy family, but died one of France’s wealthiest private individuals. You might say Voltaire was a self-made multimillionaire who built his fortune of about $100 million in today’s terms through investing, legal arbitrage, publishing, and real estate.

Voltaire distrusted speculation, laughed at hubris, and trusted carefully calculated risk. Voltaire is a bit of a hero of mine, so we will revisit him soon with additional quotes and lessons from his investments.

Voltaire lived from 1694 to 1778.

Recommended Reading

The best place to start learning more about Voltaire as an investor and man is Voltaire, by Ian Davidson. This 2012 book is the definitive biography of Voltaire's life. It covers everything from his scandalous love affairs and political maneuverings to his inspired philosophy and financial dealings.

If you want to read books by Voltaire, try his novella Candide. It's one of my favorite books, even though he apparently wrote it in just three days. The Kindle edition costs less than a dollar.

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