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.
BENJAMIN GRAHAMIn the old legend the wise men finally boiled down the history of mortal affairs into a single phrase: ‘This too will pass.’
More Benjamin Graham Quotes
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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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Always buy your straw hats in the Winter
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To be an investor you must be a believer in a better tomorrow.
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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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Why should the cotton growers suffer if there is shortage of wheat?
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The modern world is not geared properly to the storage of goods.
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Individuals who cannot master their emotions are ill-suited to profit from the investment process.
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Wall Street has a few prudent principles; the trouble is that they are always forgotten when they are most needed.
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The best values today are often found in the stocks that were once hot and have since gone cold.
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Have the courage of your knowledge and experience. If you have formed a conclusion from the facts and if you know your judgment is sound, act on it – even though others may hesitate or differ.
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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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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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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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High valuations entail high risks.
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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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Obvious prospects for physical growth in a business do not translate into obvious profits for investors.
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If you are shopping for common stocks, choose them the way you would buy groceries, not the way you would buy perfume.
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Even defensive portfolios should be changed from time to time, especially if the securities purchased have an apparently excessive advance and can be replaced by issues much more reasonable priced.
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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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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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To enjoy a reasonable chance for continued better than average results, the investor must follow policies which are (1) inherently sound and promising, and (2) not popular on Wall Street.
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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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A defensive investor can always prosper by looking patiently and calmly through the wreckage of a bear market.
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The defensive (or passive) investor will place chief emphasis on the avoidance of serious mistakes or losses. His second aim will be freedom from effort, annoyance, and the need for making frequent decisions.
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I am no longer an advocate of elaborate techniques of security analysis in order to find superior value opportunities.
BENJAMIN GRAHAM