The distinction between investment and speculation in common stocks has always been a useful one and its disappearance is cause for concern.
BENJAMIN GRAHAMHave 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.
More Benjamin Graham Quotes
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The thing that I have been emphasizing in my own work for the last few years has been the group approach. To try to buy groups of stocks that meet some simple criterion for being undervalued-regardless of the industry and with very little attention to the individual company.
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Experience teaches that the time to buy stocks is when their price is unduly depressed by temporary adversity. In other words, they should be bought on a bargain basis or not at all.
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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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A great company is not a great investment if you pay too much for the stock.
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In security analysis the prime stress is laid upon protection against untoward events. We obtain this protection by insisting upon margins of safety, or values well in excess of the price paid.
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Buy when most people, including experts, are pessimistic, and sell when they are actively optimistic.
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To be an investor you must be a believer in a better tomorrow.
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The function of the margin of safety is, in essence, that of rendering unnecessary an accurate estimate of the future.
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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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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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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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Good managements produce a good average market price, and bad managements produce bad market prices.
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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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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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In the old legend the wise men finally boiled down the history of mortal affairs into a single phrase: ‘This too will pass.’
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You must never delude yourself into thinking that you’re investing when you’re speculating.
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The qualitative factors upon which most stress is laid are the nature of the business and the character of the management. These elements are exceedingly important, but they are also exceedingly difficult to deal with intelligently.
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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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The 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.
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When somebody asserts that a stock has an earning power of so much, I am sure that the person who hears him doesn’t know what he means, and there is a good chance that the man who uses it doesn’t know what it means.
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Diversification is an established tenet of conservative investment.
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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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Never mingle your speculative and investment operations in the same account nor in any part of your thinking.
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Both individual skill (art) and chance are important factors in determining success or failure.
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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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The market is always making mountains out of molehills and exaggerating ordinary vicissitudes into major setbacks.
BENJAMIN GRAHAM