Buy not on optimism, but on arithmetic.
BENJAMIN GRAHAMThe 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.
More Benjamin Graham Quotes
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In the financial markets, hindsight is forever 20/20, but foresight is legally blind. And thus, for most investors, market timing is a practical and emotional impossibility.
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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 underlying principles of sound investment should not alter from decade to decade, but the application of these principles must be adapted to significant changes in the financial mechanisms and climate.
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Every corporate security may be best viewed, in the first instance, as an ownership interest in, or a claim against, a specific business enterprise.
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An investor calculates what a stock is worth, based on the value of its businesses.
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Investing is most intelligent when it is most businesslike.
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The volume of credit depends upon three factors: the desire to borrow, the ability to lend and the desire to lend.
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Price statistics show clearly that instability in raw-material prices is a prime cause of instability of other prices.
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In an ideal world, the intelligent investor would hold stocks only when they are cheap and sell them when they become overpriced, then duck into the bunker of bonds and cash until stocks again become cheap enough to buy.
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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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It is a misfortune of the times that all of us must needs be amateur economists-including, and perhaps especially, the professionals.
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High valuations entail high risks.
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The intelligent investor should recognize that market panics can create great prices for good companies and good prices for great companies.
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The chief losses to investors come from the purchase of low-quality securities at times of favorable business conditions.
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While enthusiasm may be necessary for great accomplishments elsewhere, on Wall Street it almost invariably leads to disaster
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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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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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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 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.
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The money cost of the reservoir plan literally fades into insignificance when it is compared with the financial burden which the great depression imposed on the nation.
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Never mingle your speculative and investment operations in the same account nor in any part of your thinking.
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It is absurd to think that the general public can ever make money out of market forecasts.
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Stock speculation is largely a matter of A trying to decide what B, C and D are likely to think-with B, C and D trying to do the same.
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As in roulette, same is true of the stock trader, who will find that the expense of trading weights the dice heavily against him.
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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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The sillier the market’s behavior, the greater the opportunity for the business like investor.
BENJAMIN GRAHAM