In the old legend the wise men finally boiled down the history of mortal affairs into a single phrase: ‘This too will pass.’
BENJAMIN GRAHAMInstead of passing blithely over into that Promised Land, flowing almost literally with milk and honey, it may be our destiny to wander a full 40 years or more in the wilderness of doubt and divided sentiments.
More Benjamin Graham Quotes
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The market is always making mountains out of molehills and exaggerating ordinary vicissitudes into major setbacks.
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There is a close logical connection between the concept of a safety margin and the principle of diversification.
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It is worth pointing out that assuredly not more than one person out of a hundred who stayed in the market after after 1925 emerged from it with a net profit and that the speculative losses taken were appalling.
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You must never delude yourself into thinking that you’re investing when you’re speculating.
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The best way to measure your investing success is not by whether you’re beating the market but by whether you’ve put in place a financial plan and a behavioral discipline that are likely to get you where you want to go.
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Confusing speculation with investment is always a mistake.
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Always buy your straw hats in the Winter
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Buy not on optimism, but on arithmetic.
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No statement is more true and better applicable to Wall Street than the famous warning of Santayana: “Those who do not remember the past are condemned to repeat it”.
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Speculative stock movements are carried too far in both directions, frequently in the general market and at all times in at least some of the individual issues.
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Both individual skill (art) and chance are important factors in determining success or failure.
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A defensive investor can always prosper by looking patiently and calmly through the wreckage of a bear market.
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The distinction between investment and speculation in common stocks has always been a useful one and its disappearance is cause for concern.
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Undervaluations caused by neglect or prejudice may persist for an inconveniently long time, and the same applies to inflated prices caused by over-enthusiasm or artificial stimulants.
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Calculate a stock’s price/earnings ratio yourself, using Graham’s formula of current price divided by average earnings over the past three years.
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