Obvious prospects for physical growth in a business do not translate into obvious profits for investors.
BENJAMIN GRAHAMObvious prospects for physical growth in a business do not translate into obvious profits for investors.
BENJAMIN GRAHAMCalculate a stock’s price/earnings ratio yourself, using Graham’s formula of current price divided by average earnings over the past three years.
BENJAMIN GRAHAMThe world has not learned the technique of balanced expansion without the resultant commercial and financial congestion.
BENJAMIN GRAHAMWhether we like it or not, government intervention in the face of surplus is here to stay.
BENJAMIN GRAHAMThe market is always making mountains out of molehills and exaggerating ordinary vicissitudes into major setbacks.
BENJAMIN GRAHAMRather 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.
BENJAMIN GRAHAMIt is no difficult trick to bring a great deal of energy, study, and native ability into Wall Street and to end up with losses instead of profits. These virtues, if channeled in the wrong directions, become indistinguishable from handicaps.
BENJAMIN GRAHAMIf 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.
BENJAMIN GRAHAMGood managements produce a good average market price, and bad managements produce bad market prices.
BENJAMIN GRAHAMThe most striking thing about Graham’s discussion of how to allocate your assets between stocks and bonds is that he never mentions the word “age”.
BENJAMIN GRAHAMAvoid second-quality issues in making up a portfolio unless they are demonstrable bargains.
BENJAMIN GRAHAMTo 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.
BENJAMIN GRAHAMI am no longer an advocate of elaborate techniques of security analysis in order to find superior value opportunities.
BENJAMIN GRAHAMWall Street people learn nothing and forget everything.
BENJAMIN GRAHAMAt heart, “uncertainty” and “investing” are synonyms.
BENJAMIN GRAHAMThe defensive (or passive) investor will place chief emphasis on the avoidance of serious mistakes or losses. His second aim will be freedom from effort, annoyance, and the need for making frequent decisions.
BENJAMIN GRAHAM