The defensive (or passive) investor will place chief emphasis on the avoidance of serious mistakes or losses. His second aim will be freedom from effort, annoyance, and the need for making frequent decisions.
BENJAMIN GRAHAMNever mingle your speculative and investment operations in the same account nor in any part of your thinking.
More Benjamin Graham Quotes
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The investor’s chief problem – and even his worst enemy – is likely to be himself.
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Never buy a stock immediately after a substantial rise or sell one immediately after a substantial drop.
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The modern world is not geared properly to the storage of goods.
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Nothing important on Wall Street can be counted on to occur exactly in the same way as it happened before.
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To establish the right price for a stock, the market must have adequate information, but it by no means follows that is the market has this information it will thereupon establish the right price.
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Traditionally the investor has been the man with patience and the courage of his convictions who would buy when the harried or disheartened speculator was selling.
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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.
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It’s nonsensical to derive a price/earnings ratio by dividing the known current price by unknown future earnings.
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Investing is most intelligent when it is most businesslike.
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Confusing speculation with investment is always a mistake.
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If fees consume more than 1% of your assets annually, you should probably shop for another adviser.
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Thus the important and difficult part of sound investment, which hinges upon the investor’s own temperament and attitude, is not much affected by the passing years.
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It is a misfortune of the times that all of us must needs be amateur economists-including, and perhaps especially, the professionals.
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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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Why should the cotton growers suffer if there is shortage of wheat?
BENJAMIN GRAHAM