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.
BENJAMIN GRAHAMAlways remember that market quotations are there for convenience, either to be taken advantage of or to be ignored.
More Benjamin Graham Quotes
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The intelligent investor is a realist who sells to optimists and buys from pessimists.
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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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The best values today are often found in the stocks that were once hot and have since gone cold.
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Before you place your financial future in the hands of an adviser, it’s imperative that you find someone who not only makes you comfortable but whose honesty is beyond reproach.
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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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Investing is most intelligent when it is most businesslike.
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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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Never buy a stock because it has gone up or sell one because it has gone down.
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The value of any investment is, and always must be, a function of the price you pay for it.
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Nothing important on Wall Street can be counted on to occur exactly in the same way as it happened before.
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Experience teaches that the time to buy stocks is when their price is unduly depressed by temporary adversity. In other words, they should be bought on a bargain basis or not at all.
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In the short-run, the market is a voting machine – reflecting a voter-registration test that requires only money, not intelligence or emotional stability – but in the long- run, the market is a weighing machine.
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The investor should be aware that even though safety of its principal and interest may be unquestioned, a long term bond could vary widely in market price in response to changes in interest rates.
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The purpose of this book is to supply, in the form suitable for laymen, guidance in the adoption and execution of an investment policy.
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I quickly convinced myself that the true key to material happiness lay in a modest standard of living which could be achieved with little difficulty under almost all economic conditions.
BENJAMIN GRAHAM