A speculator gambles that a stock will go up in price because somebody else will pay even more for it.
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.
More Benjamin Graham Quotes
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The chief losses to investors come from the purchase of low-quality securities at times of favorable business conditions.
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The Reservoir system will function not only as an equalizer of business conditions, but also as a national store to meet further emergencies, such as war and drought, and-most important of all-as the concrete means of developing a steadily higher living standard for all.
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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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The 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.
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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 sillier the market’s behavior, the greater the opportunity for the business like investor.
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As in roulette, same is true of the stock trader, who will find that the expense of trading weights the dice heavily against him.
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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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Buy when most people, including experts, are pessimistic, and sell when they are actively optimistic.
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The existence of such a war chest might go far to strengthen our prestige and frighten off any would be assailant.
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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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An investor calculates what a stock is worth, based on the value of its businesses.
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Do not let anyone else run your business
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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 value of any investment is, and always must be, a function of the price you pay for it.
BENJAMIN GRAHAM