The value of any investment is, and always must be, a function of the price you pay for it.
BENJAMIN GRAHAMThe Reservoir system will function not only as an equalizer of business conditions, but also as a national store to meet further emergencies, such as war and drought, and-most important of all-as the concrete means of developing a steadily higher living standard for all.
More Benjamin Graham Quotes
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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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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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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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High valuations entail high risks.
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People who invest make money for themselves; people who speculate make money for their brokers. And that, in turn, is why Wall Street perennially downplays the durable virtues of investing and hypes the gaudy appeal of speculation.
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Always buy your straw hats in the Winter
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Many progressive economists insist that gold is now in essentially the same position as silver and that the arguments the simon-pure gold advocates use against the white metal can be directed with equal effect against their own fetish.
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Good managements produce a good average market price, and bad managements produce bad market prices.
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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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There is a close logical connection between the concept of a safety margin and the principle of diversification.
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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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Diversification is an established tenet of conservative investment.
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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.
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If you are shopping for common stocks, choose them the way you would buy groceries, not the way you would buy perfume.
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Both individual skill (art) and chance are important factors in determining success or failure.
BENJAMIN GRAHAM