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 GRAHAMThe sillier the market’s behavior, the greater the opportunity for the business like investor.
More Benjamin Graham Quotes
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We urge the beginner in security buying not to waste his efforts and his money in trying to beat the market. Let him study security values and initially test out his judgment on price versus value with the smallest possible sums.
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The most striking thing about Graham’s discussion of how to allocate your assets between stocks and bonds is that he never mentions the word “age”.
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Confronted with a challenge to distill the secret of sound investment into three words, we venture the motto, Margin of Safety.
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Wall Street people learn nothing and forget everything.
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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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Real investment risk is measured not by the percent that a stock may decline in price in relation to the general market in a given period, but by the danger of a loss of quality and earnings power through economic changes or deterioration in management.
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The stock market resembles a huge laundry in which institutions take in large blocks of each others washing … without rhyme or reason.
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I am more and more impressed with the possibilities of history’s repeating itself on many different counts. You don’t get very far in Wall Street with the simple, convenient conclusion that a given level of prices is not too high.
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In the old legend the wise men finally boiled down the history of mortal affairs into a single phrase: ‘This too will pass.’
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Successful investing is about managing risk, not avoiding it.
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Why should the cotton growers suffer if there is shortage of wheat?
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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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Never buy a stock immediately after a substantial rise or sell one immediately after a substantial drop.
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The investor’s chief problem – and even his worst enemy – is likely to be himself.
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The investor’s primary interest lies in acquiring and holding suitable securities at suitable prices.
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Buy not on optimism, but on arithmetic.
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The idea of storage as a solution of economic problems at least has the support of common sense.It is diametrically opposed to the topsy-turvy Alice-in-Wonderland reasoning that has marked so much of our depression thinking and policy.
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The sillier the market’s behavior, the greater the opportunity for the business like investor.
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The genuine investor in common stocks does not need a great equipment of brain and knowledge, but he does need some unusual qualities of character
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Whenever the investor sold out in an upswing as soon as the top level of the previous well-recognized bull market was reached, he had a chance in the next bear market to buy back at one third (or better) below his selling price.
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Most of the time common stocks are subject to irrational and excessive price fluctuations in both directions as the consequence of the ingrained tendency of most people to speculate or gamble… to give way to hope, fear and greed.
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The value of the security analyst to the investor depends largely on the investor’s own attitude. If the investor asks the analyst the right questions, he is likely to get the right or at least valuable answers.
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To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks.
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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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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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The investor should be aware that even though safety of its principal and interest may be unquestioned, a long term bond could vary widely in market price in response to changes in interest rates.
BENJAMIN GRAHAM