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An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return.

Benjamin Graham

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Benjamin Graham
Age: 82 †
Born: 1894
Born: May 8
Died: 1976
Died: September 21
Economist
Financier
Investor
University Teacher
Writer
London
England
Upon
Promises
Principal
Operations
Analysis
Investment
Safety
Thorough
Promise
Operation
Return
Adequate

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The stock market resembles a huge laundry in which institutions take in large blocks of each others washing ... without rhyme or reason.
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There is no reason to feel any shame in hiring someone to pick stocks or mutual funds for you. But there's one responsibility that you must never delegate. You, and no one but you, must investigate whether an adviser is trustworthy and charges reasonable fees.
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Even the most conservative must realize that the recent transformation of surplus from an individual to a national disaster implies a scathing indictment of our capitalist system as it has now developed.
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you may take it as an axiom that you cannot profit in Wall Street by continuously doing the obvious or the popular thing
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An investor calculates what a stock is worth, based on the value of its businesses.
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It is worth pointing out that assuredly not more than one person out of a hundred who stayed in the market after after 1925 emerged from it with a net profit and that the speculative losses taken were appalling.
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Observation over many years has taught us that the chief losses to investors come from the purchase of low-quality securities at times of good business conditions. The purchasers view the good current earnings as equivalent to 'earning power' and assume that prosperity is equivalent to safety.
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Confronted with a challenge to distill the secret of sound investment into three words, we venture the motto, Margin of Safety.
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Many progressive economists insist that gold is now in essentially the same position as silver and that the arguments the simon-pure gold advocates use against the white metal can be directed with equal effect against their own fetish.
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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 investor with a portfolio of sound stocks should expect their prices to fluctuate and should neither be concerned by sizable declines nor become excited by sizable advances. He should always remember that market quotations are there for his convenience, either to be taken advantage of or to be ignored.
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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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It is absurd to think that the general public can ever make money out of market forecasts.
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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 see how much a company is truly earning on the capital it deploys in its businesses, look beyond EPS to Return on Invested Capital (ROIC).
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The intelligent investor is a realist who sells to optimists and buys from pessimists.
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High valuations entail high risks.
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Never buy a stock immediately after a substantial rise or sell one immediately after a substantial drop.
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Wall Street has a few prudent principles the trouble is that they are always forgotten when they are most needed.
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Diversification is an established tenet of conservative investment.
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