You must never delude yourself into thinking that you’re investing when you’re speculating.
BENJAMIN GRAHAMThe qualitative factors upon which most stress is laid are the nature of the business and the character of the management. These elements are exceedingly important, but they are also exceedingly difficult to deal with intelligently.
More Benjamin Graham Quotes
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To see how much a company is truly earning on the capital it deploys in its businesses, look beyond EPS to Return on Invested Capital (ROIC).
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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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There is a close logical connection between the concept of a safety margin and the principle of diversification.
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When somebody asserts that a stock has an earning power of so much, I am sure that the person who hears him doesn’t know what he means, and there is a good chance that the man who uses it doesn’t know what it means.
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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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Buy not on optimism, but on arithmetic.
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Diversification is an established tenet of conservative investment.
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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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To enjoy a reasonable chance for continued better than average results, the investor must follow policies which are (1) inherently sound and promising, and (2) not popular on Wall Street.
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An investor calculates what a stock is worth, based on the value of its businesses.
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Confusing speculation with investment is always a mistake.
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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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Always buy your straw hats in the Winter
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Why should the cotton growers suffer if there is shortage of wheat?
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The sillier the market’s behavior, the greater the opportunity for the business like investor.
BENJAMIN GRAHAM