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.
BENJAMIN GRAHAMThe 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”.
More Benjamin Graham Quotes
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In the short run, the market is a voting machine, but in the long run it is a weighing machine.
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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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High valuations entail high risks.
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Do not let anyone else run your business
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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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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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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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It is a fact worth pondering that four centuries ago the evil of “an abundance or surplus” arose from its being kept off the market, while today the evil of surplus lies in its being thrown upon the market.
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Both individual skill (art) and chance are important factors in determining success or failure.
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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 great company is not a great investment if you pay too much for the stock.
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Confusing speculation with investment is always a mistake.
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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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The world has not learned the technique of balanced expansion without the resultant commercial and financial congestion.
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The sillier the market’s behavior, the greater the opportunity for the business like investor.
BENJAMIN GRAHAM