Even defensive portfolios should be changed from time to time, especially if the securities purchased have an apparently excessive advance and can be replaced by issues much more reasonable priced.
BENJAMIN GRAHAMThe intelligent investor gets interested in big growth stocks not when they are at their most popular – but when something goes wrong.
More Benjamin Graham Quotes
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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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Unusually rapid growth cannot keep up forever; when a company has already registered a brilliant expansion, its very increase in size makes a repetition of its achievement more difficult.
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Although there are good and bad companies, there is no such thing as a good stock; there are only good stock prices, which come and go.
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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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Both a priori reasoning and experience teach us that as as these funds grow larger the geometrical rate of growth by compound interest ultimately defeats itself.
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The investor’s chief problem – and even his worst enemy – is likely to be himself.
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Buy not on optimism, but on arithmetic.
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Rather should we say that the market is a voting machine, whereon countless individuals register choices which are the product partly of reason and partly of emotion.
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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 underlying principles of sound investment should not alter from decade to decade, but the application of these principles must be adapted to significant changes in the financial mechanisms and climate.
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there is a tendency in part of Wall Street people to pay excessive attention to the most recent figures and the present financial picture.
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As in roulette, same is true of the stock trader, who will find that the expense of trading weights the dice heavily against him.
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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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Even the most conservative must realize that the recent transformation of surplus from an individual to a national disaster implies a scathing indictment of our capitalist system as it has now developed.
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It is worth pointing out that assuredly not more than one person out of a hundred who stayed in the market after after 1925 emerged from it with a net profit and that the speculative losses taken were appalling.
BENJAMIN GRAHAM