Quote

The purchase of a bargain issue presupposes that the market's current appraisal is wrong, or at least that the buyer's idea of value is more likely to be right than the market's. In this process the investor sets his judgement against that of the market. To some this may seem arrogant or foolhardy.

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
Seems
Value
Judgement
Appraisal
May
Seem
Investors
Presupposes
Ideas
Issues
Sets
Buyers
Right
Least
Current
Investor
Wrong
Currents
Bargain
Values
Likely
Purchase
Idea
Issue
Bargains
Buyer
Process
Market
Arrogant
Foolhardy

More quotes by Benjamin Graham

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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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Most of the time common stocks are subject to irrational and excessive price fluctuations in both directions as the consequence of the ingrained tendency of most people to speculate or gamble... to give way to hope, fear and greed.
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An investor calculates what a stock is worth, based on the value of its businesses.
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A stock is not just a ticker symbol or an electronic blip it is an ownership interest in an actual business, with an underlying value that does not depend on its share price.
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In nine companies out of ten the factor of fluctuation has been a more dominant and important consideration in the matter of investment than has the factor of long-term growth or decline
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The best way to measure your investing success is not by whether you're beating the market but by whether you've put in place a financial plan and a behavioral discipline that are likely to get you where you want to go.
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... the loss of public confidence in the financial community growing out of its own conduct in recent years. I insist that more damage has been done to stock values and to the future of equities from inside Wall Street than from outside Wall Street.
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Individuals who cannot master their emotions are ill-suited to profit from the investment process.
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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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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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Thousands of people have tried, and the evidence is clear: The more you trade, the less you keep.
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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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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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Wall Street has a few prudent principles the trouble is that they are always forgotten when they are most needed.
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Both individual skill (art) and chance are important factors in determining success or failure.
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You must never delude yourself into thinking that you're investing when you're speculating.
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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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Never buy a stock immediately after a substantial rise or sell one immediately after a substantial drop.
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The investor's primary interest lies in acquiring and holding suitable securities at suitable prices.
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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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