It’s nonsensical to derive a price/earnings ratio by dividing the known current price by unknown future earnings.
BENJAMIN GRAHAMAvoid second-quality issues in making up a portfolio unless they are demonstrable bargains.
More Benjamin Graham Quotes
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Both individual skill (art) and chance are important factors in determining success or failure.
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Do not let anyone else run your business
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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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The Reservoir plan is an engineering mechanism applied to the field of economics, and in its essence it has nothing to do with democracy or any other political philosophy.
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Stock speculation is largely a matter of A trying to decide what B, C and D are likely to think-with B, C and D trying to do the same.
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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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Mr. Market’s job is to provide you with prices; your job is to decide whether it is to your advantage to act on them. You no not have to trade with hime just because he constantly begs you to.
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The market is a pendulum that forever swings between unsustainable optimism (which makes stocks too expensive) and unjustified pessimism (which makes them too cheap). The intelligent investor is a realist who sells to optimists and buys from pessimists.
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I am no longer an advocate of elaborate techniques of security analysis in order to find superior value opportunities.
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Buy not on optimism, but on arithmetic.
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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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Stocks can be dynamite.
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Price statistics show clearly that instability in raw-material prices is a prime cause of instability of other prices.
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Price fluctuations have only one significant meaning for the true investor. They provide him with an opportunity to buy wisely when prices fall sharply and to sell wisely when they advance a great deal.
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The investor’s chief problem – and even his worst enemy – is likely to be himself.
BENJAMIN GRAHAM