For readers who are new to value investing, here is a list of commonly used terms.

Benjamin Graham - Arguably the father of value investing. Both Warren Buffett and Walter Schloss were his student. Graham's most influential works include The Intelligent Investor and Security Analysis.

Earning power value (EPV) - The intrinsic value of a company based on its ability to make consistent profit in long run

Margin of Safety - One of the core principles in Graham's investment philosophy that investment should be purchased at a discount to its underlying intrinsic value. As a rule of thumb, Graham demands at least a 1/3 discount. i.e. buying 66 cents a dollar. The margin of safety doesn't not only account for potential gain of the investment when the value gap closes, it also serves as buffer for any mistakes made by the investor in their judgment of the merit of the investment.

Net current asset value (NCAV) - Defined as current assets less total labilities. Notice that we count only current assets but subtract total labilities. This is used as a crude but conservative approximation of the liquidation value of a company.

Net-nets - Companies which are traded at a discount to its NCAV.

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