Never buy a stock immediately after a substantial rise or sell one immediately after a substantial drop.
BENJAMIN GRAHAMThe purpose of this book is to supply, in the form suitable for laymen, guidance in the adoption and execution of an investment policy.
More Benjamin Graham Quotes
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Wall Street people learn nothing and forget everything.
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To see how much a company is truly earning on the capital it deploys in its businesses, look beyond EPS to Return on Invested Capital (ROIC).
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It must be fundamentally wrong to reduce production of food and fiber while one-third of our population is still ill fed and ill clothed.
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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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Mr. Market’s job is to provide you with prices; your job is to decide whether it is to your advantage to act on them. You no not have to trade with hime just because he constantly begs you to.
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By refusing to pay too much for an investment, you minimize the chances that your wealth will ever disappear or suddenly be destroyed.
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Successful investment may become substantially a matter of techniques and criteria that are learnable, rather than the product of unique and incommunicable mental powers.
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The function of the margin of safety is, in essence, that of rendering unnecessary an accurate estimate of the future.
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Avoid second-quality issues in making up a portfolio unless they are demonstrable bargains.
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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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The qualitative factors upon which most stress is laid are the nature of the business and the character of the management. These elements are exceedingly important, but they are also exceedingly difficult to deal with intelligently.
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The market is always making mountains out of molehills and exaggerating ordinary vicissitudes into major setbacks.
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The sillier the market’s behavior, the greater the opportunity for the business like investor.
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Diversification is an established tenet of conservative investment.
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It’s nonsensical to derive a price/earnings ratio by dividing the known current price by unknown future earnings.
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Buy when most people, including experts, are pessimistic, and sell when they are actively optimistic.
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Both a priori reasoning and experience teach us that as as these funds grow larger the geometrical rate of growth by compound interest ultimately defeats itself.
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Why should the cotton growers suffer if there is shortage of wheat?
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It is a fact worth pondering that four centuries ago the evil of “an abundance or surplus” arose from its being kept off the market, while today the evil of surplus lies in its being thrown upon the market.
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The essence of investment management is the management of risks, not the management of returns.
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you may take it as an axiom that you cannot profit in Wall Street by continuously doing the obvious or the popular thing
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The world has not learned the technique of balanced expansion without the resultant commercial and financial congestion.
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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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there is a tendency in part of Wall Street people to pay excessive attention to the most recent figures and the present financial picture.
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In the short run, the market is a voting machine, but in the long run it is a weighing machine.
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Unusually rapid growth cannot keep up forever; when a company has already registered a brilliant expansion, its very increase in size makes a repetition of its achievement more difficult.
BENJAMIN GRAHAM