Avoid second-quality issues in making up a portfolio unless they are demonstrable bargains.
BENJAMIN GRAHAMThe 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.
More Benjamin Graham Quotes
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It is absurd to think that the general public can ever make money out of market forecasts.
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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 intelligent investor shouldn’t ignore Mr. Market entirely. Instead, you should do business with him- but only to the extent that it serves your interests.
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The thing that I have been emphasizing in my own work for the last few years has been the group approach. To try to buy groups of stocks that meet some simple criterion for being undervalued-regardless of the industry and with very little attention to the individual company.
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The people of the United States will not tolerate another deep depression that arises not from any lack of natural resources, productive capacity or man and brain power, but solely from imperfections in the functioning of the system of finance capitalism.
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Diversification is an established tenet of conservative investment.
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By refusing to pay too much for an investment, you minimize the chances that your wealth will ever disappear or suddenly be destroyed.
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Have the courage of your knowledge and experience. If you have formed a conclusion from the facts and if you know your judgment is sound, act on it – even though others may hesitate or differ.
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In the short run, the market is a voting machine, but in the long run it is a weighing machine.
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No statement is more true and better applicable to Wall Street than the famous warning of Santayana: “Those who do not remember the past are condemned to repeat it”.
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Instead of passing blithely over into that Promised Land, flowing almost literally with milk and honey, it may be our destiny to wander a full 40 years or more in the wilderness of doubt and divided sentiments.
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Though business conditions may change, corporations and securities may change, and financial institutions and regulations may change, human nature remains the same.
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The intelligent investor should recognize that market panics can create great prices for good companies and good prices for great companies.
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The intelligent investor gets interested in big growth stocks not when they are at their most popular – but when something goes wrong.
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Individuals who cannot master their emotions are ill-suited to profit from the investment process.
BENJAMIN GRAHAM