A great company is not a great investment if you pay too much for the stock.
BENJAMIN GRAHAMBuy when most people, including experts, are pessimistic, and sell when they are actively optimistic.
More Benjamin Graham Quotes
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Whenever the investor sold out in an upswing as soon as the top level of the previous well-recognized bull market was reached, he had a chance in the next bear market to buy back at one third (or better) below his selling price.
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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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It requires strength of character in order to think and to act in opposite fashion from the crowd and also patience to wait for opportunities that may be spaced years apart.
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Buy not on optimism, but on arithmetic.
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Real investment risk is measured not by the percent that a stock may decline in price in relation to the general market in a given period, but by the danger of a loss of quality and earnings power through economic changes or deterioration in management.
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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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Investing isn’t about beating others at their game. It’s about controlling yourself at your own game.
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By developing your discipline and courage, you can refuse to let other people’s mood swings govern your financial destiny. In the end, how your investments behave is much less important than how you behave.
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Every corporate security may be best viewed, in the first instance, as an ownership interest in, or a claim against, a specific business enterprise.
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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.
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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 stock market resembles a huge laundry in which institutions take in large blocks of each others washing … without rhyme or reason.
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It should be remembered that a decline of 50% fully offsets a preceding advance of 100%.
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The only thing you should do with pro forma earnings is ignore them.
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No matter how careful you are, the one risk no investor can ever eliminate is the risk of being wrong. Only by insisting on what Graham called the “margin of safety” – never overpaying, no matter how exciting an investment seems to be – can you minimize your odds of error.
BENJAMIN GRAHAM