Never buy a stock because it has gone up or sell one because it has gone down.
BENJAMIN GRAHAMThe stock market resembles a huge laundry in which institutions take in large blocks of each others washing … without rhyme or reason.
More Benjamin Graham Quotes
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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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The thing that I have been emphasizing in my own work for the last few years has been the group approach. To try to buy groups of stocks that meet some simple criterion for being undervalued-regardless of the industry and with very little attention to the individual company.
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Those with the enterprise lack the money and those with the money lack the enterprise to buy stocks when they are cheap.
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The modern world is not geared properly to the storage of goods.
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Knowledge is only one ingredient on arriving at a stock’s proper price. The other ingredient, fully as important as information, is sound judgment.
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The beauty of periodic rebalancing is that it forces you to base your investing decisions on a simple, objective standard.
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A stock is not just a ticker symbol or an electronic blip; it is an ownership interest in an actual business, with an underlying value that does not depend on its share price.
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A speculator gambles that a stock will go up in price because somebody else will pay even more for it.
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The existence of such a war chest might go far to strengthen our prestige and frighten off any would be assailant.
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An investor calculates what a stock is worth, based on the value of its businesses.
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Diversification is an established tenet of conservative investment.
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Though business conditions may change, corporations and securities may change, and financial institutions and regulations may change, human nature remains the same.
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We define a bargain issue as one which, on the basis of facts established by analysis, appears to be worth considerably more that it is selling for.
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The intelligent investor shouldn’t ignore Mr. Market entirely. Instead, you should do business with him- but only to the extent that it serves your interests.
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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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A defensive investor can always prosper by looking patiently and calmly through the wreckage of a bear market.
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Nothing important on Wall Street can be counted on to occur exactly in the same way as it happened before.
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In other words, the market is not a weighing machine, on which the value of each issue is recorded by an exact and impersonal mechanism, in accordance with its specific qualities.
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The investor who permits himself to be stampeded or unduly worried by unjustified market declines in his holdings is perversely transforming his basic advantage into a basic disadvantage.
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The utility, or intrinsic value of gold as a commodity is now considerably less than in the past; its monetary status has become extraordinarily ambiguous; and its future is highly uncertain.
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Rather should we say that the market is a voting machine, whereon countless individuals register choices which are the product partly of reason and partly of emotion.
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Thousands of people have tried, and the evidence is clear: The more you trade, the less you keep.
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If I have noticed anything over these 60 years on Wall Street, it is that people do not succeed in forecasting what`s going to happen to the stock market.
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… the loss of public confidence in the financial community growing out of its own conduct in recent years. I insist that more damage has been done to stock values and to the future of equities from inside Wall Street than from outside Wall Street.
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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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No matter how careful you are, the one risk no investor can ever eliminate is the risk of being wrong. Only by insisting on what Graham called the “margin of safety” – never overpaying, no matter how exciting an investment seems to be – can you minimize your odds of error.
BENJAMIN GRAHAM