The investor’s primary interest lies in acquiring and holding suitable securities at suitable prices.
BENJAMIN GRAHAMNo 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.
More Benjamin Graham Quotes
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The true investor… will do better if he forgets about the stock market and pays attention to his dividend returns and to the operation results of his companies.
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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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Thousands of people have tried, and the evidence is clear: The more you trade, the less you keep.
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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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A great company is not a great investment if you pay too much for the stock.
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The investor’s chief problem – and even his worst enemy – is likely to be himself.
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The only thing you should do with pro forma earnings is ignore them.
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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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The beauty of periodic rebalancing is that it forces you to base your investing decisions on a simple, objective standard.
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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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If General Motors is worth $60 a share to an investor it must be because the full common-stock ownership of this gigantic enterprise as a whole is worth 43 million (shares) times $60, or no less than $2,600 million.
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The distinction between investment and speculation in common stocks has always been a useful one and its disappearance is cause for concern.
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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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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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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.
BENJAMIN GRAHAM