Thousands of people have tried, and the evidence is clear: The more you trade, the less you keep.
BENJAMIN GRAHAMThe idea of storage as a solution of economic problems at least has the support of common sense.It is diametrically opposed to the topsy-turvy Alice-in-Wonderland reasoning that has marked so much of our depression thinking and policy.
More Benjamin Graham Quotes
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We urge the beginner in security buying not to waste his efforts and his money in trying to beat the market. Let him study security values and initially test out his judgment on price versus value with the smallest possible sums.
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The 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.
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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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Why should the cotton growers suffer if there is shortage of wheat?
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Successful investing professionals are disciplined and consistent and they think a great deal about what they do and how they do it.
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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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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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To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks.
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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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Individuals who cannot master their emotions are ill-suited to profit from the investment process.
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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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If you are shopping for common stocks, choose them the way you would buy groceries, not the way you would buy perfume.
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Always buy your straw hats in the Winter
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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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Speculative stock movements are carried too far in both directions, frequently in the general market and at all times in at least some of the individual issues.
BENJAMIN GRAHAM