To see how much a company is truly earning on the capital it deploys in its businesses, look beyond EPS to Return on Invested Capital (ROIC).
BENJAMIN GRAHAMTo achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks.
More Benjamin Graham Quotes
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Never buy a stock because it has gone up or sell one because it has gone down.
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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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Never mingle your speculative and investment operations in the same account nor in any part of your thinking.
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It should be remembered that a decline of 50% fully offsets a preceding advance of 100%.
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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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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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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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Diversification is an established tenet of conservative investment.
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The distinction between investment and speculation in common stocks has always been a useful one and its disappearance is cause for concern.
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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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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 the short-run, the market is a voting machine – reflecting a voter-registration test that requires only money, not intelligence or emotional stability – but in the long- run, the market is a weighing machine.
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Successful investing professionals are disciplined and consistent and they think a great deal about what they do and how they do it.
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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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The intelligent investor is likely to need considerable will power to keep from following the crowd.
BENJAMIN GRAHAM