Quote

Never buy a stock immediately after a substantial rise or sell one immediately after a substantial drop.

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
Rise
Never
Substantial
Stock
Drop
Immediately
Sell
Sells

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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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An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return.
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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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Good managements produce a good average market price, and bad managements produce bad market prices.
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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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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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Wall Street has a few prudent principles the trouble is that they are always forgotten when they are most needed.
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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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Real investment risk is measured not by the percent that a stock may decline in price in relation to the general market in a given period, but by the danger of a loss of quality and earnings power through economic changes or deterioration in management.
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No matter how careful you are, the one risk no investor can ever eliminate is the risk of being wrong. Only by insisting on what Graham called the margin of safety - never overpaying, no matter how exciting an investment seems to be - can you minimize your odds of error.
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Diversification is an established tenet of conservative investment.
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The intelligent investor is a realist who sells to optimists and buys from pessimists.
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If we assume that there are normal or standard income results to be obtained from investing money in securities, then the role of the adviser can be more readily established. He will use his superior training and experience to protect his clients against mistakes and to make sure that they obtain the results to which their money is entitled.
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To 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.
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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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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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Price fluctuations have only one significant meaning for the true investor. They provide him with an opportunity to buy wisely when prices fall sharply and to sell wisely when they advance a great deal.
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