Never buy a stock immediately after a substantial rise or sell one immediately after a substantial drop.
BENJAMIN GRAHAMIf you are shopping for common stocks, choose them the way you would buy groceries, not the way you would buy perfume.
More Benjamin Graham Quotes
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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.
BENJAMIN GRAHAM -
There is something paradoxical in the fact that by establishing an export market we subject our entire domestic production to the vagaries of that market.
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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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Intelligent investment is more a matter of mental approach than it is of technique. A sound mental approach toward stock fluctuations is the touchstone of all successful investment under present-day conditions.
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Successful investing is about managing risk, not avoiding it.
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The beauty of periodic rebalancing is that it forces you to base your investing decisions on a simple, objective standard.
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It is absurd to think that the general public can ever make money out of market forecasts.
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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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There is a close logical connection between the concept of a safety margin and the principle of diversification.
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The ideal form of common stock analysis leads to a valuation of the issue which can be compared with the current price to determine whether or not the security is an attractive purchase.
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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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Diversification is an established tenet of conservative investment.
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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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Stocks can be dynamite.
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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.
BENJAMIN GRAHAM