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.
BENJAMIN GRAHAMPrice statistics show clearly that instability in raw-material prices is a prime cause of instability of other prices.
More Benjamin Graham Quotes
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Always buy your straw hats in the Winter
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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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Losing some money is an inevitable part of investing, and there’s nothing you can do to prevent it. But to be an intelligent investor, you must take responsibility for ensuring that you never lose most or all of your money.
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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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Investing isn’t about beating others at their game. It’s about controlling yourself at your own game.
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You must never delude yourself into thinking that you’re investing when you’re speculating.
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I quickly convinced myself that the true key to material happiness lay in a modest standard of living which could be achieved with little difficulty under almost all economic conditions.
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Before you place your financial future in the hands of an adviser, it’s imperative that you find someone who not only makes you comfortable but whose honesty is beyond reproach.
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In the world of securities, courage becomes the supreme virtue after adequate knowledge and a tested judgment are at hand.
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We have not known a single person who has consistently or lastingly make money by thus “following the market”. We do not hesitate to declare this approach is as fallacious as it is popular.
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Diversification is an established tenet of conservative investment.
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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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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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It should be remembered that a decline of 50% fully offsets a preceding advance of 100%.
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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