Quote

The investor has a right to expect good results to flow from a consistent and courageous application of the principle of buying after the market has declined substantially and selling after it has had a spectacular rise. But he cannot expect to reduce this principle to a simple and foolproof formula, with profits guaranteed and no anxious periods.

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
Cannot
Profit
Courageous
Investor
Right
Market
Application
Guaranteed
Good
Flow
Anxious
Profits
Periods
Consistent
Spectacular
Expect
Buying
Formula
Principles
Selling
Formulas
Foolproof
Results
Principle
Reduce
Declined
Simple
Rise
Investors
Substantially

More quotes by Benjamin Graham

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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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It is absurd to think that the general public can ever make money out of market forecasts.
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Diversification is an established tenet of conservative investment.
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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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In other words, the market is not a weighing machine, on which the value of each issue is recorded by an exact and impersonal mechanism, in accordance with its specific qualities. Rather should we say that the market is a voting machine, whereon countless individuals register choices which are the product partly of reason and partly of emotion.
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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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It must be fundamentally wrong to reduce production of food and fiber while one-third of our population is still ill fed and ill clothed.
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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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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 intelligent investor should recognize that market panics can create great prices for good companies and good prices for great companies.
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Though business conditions may change, corporations and securities may change, and financial institutions and regulations may change, human nature remains the same. Thus the important and difficult part of sound investment, which hinges upon the investor's own temperament and attitude, is not much affected by the passing years.
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Always buy your straw hats in the Winter
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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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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.
Benjamin Graham
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In an ideal world, the intelligent investor would hold stocks only when they are cheap and sell them when they become overpriced, then duck into the bunker of bonds and cash until stocks again become cheap enough to buy.
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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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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.
Benjamin Graham
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Individuals who cannot master their emotions are ill-suited to profit from the investment process.
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You must never delude yourself into thinking that you're investing when you're speculating.
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In the short run, the market is a voting machine, but in the long run it is a weighing machine.
Benjamin Graham