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The chief losses to investors come from the purchase of low-quality securities at times of favorable business conditions.

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
Quality
Investors
Times
Chief
Business
Chiefs
Come
Investing
Lows
Securities
Loss
Favorable
Conditions
Purchase
Security
Losses

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It requires strength of character in order to think and to act in opposite fashion from the crowd and also patience to wait for opportunities that may be spaced years apart.
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The essence of investment management is the management of risks, not the management of returns.
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High valuations entail high risks.
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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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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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In the world of securities, courage becomes the supreme virtue after adequate knowledge and a tested judgment are at hand.
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Knowledge is only one ingredient on arriving at a stock's proper price. The other ingredient, fully as important as information, is sound judgment.
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Price statistics show clearly that instability in raw-material prices is a prime cause of instability of other prices.
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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 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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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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Wall Street has a few prudent principles the trouble is that they are always forgotten when they are most needed.
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At heart, uncertainty and investing are synonyms.
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An intelligent investor gets satisfaction from the thought that his operations are exactly opposite to those of the crowd.
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It always seemed, and still seems, ridiculously simple to say that if one can acquire a diversified group of common stocks at a price less than the applicable net current assets alone - after deducting all prior claims, and counting as zero the fixed and other assets - the results should be quite satisfactory.
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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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I am more and more impressed with the possibilities of history's repeating itself on many different counts. You don't get very far in Wall Street with the simple, convenient conclusion that a given level of prices is not too high.
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Speculators often prosper through ignorance it is a cliché that in a roaring bull market knowledge is superfluous and experience is a handicap. But the typical experience of the speculator is one of temporary profit and ultimate loss
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The beauty of periodic rebalancing is that it forces you to base your investing decisions on a simple, objective standard.
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