Quote

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.

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
Time
Temporary
Basis
Unduly
Adversity
Bargain
Bases
Bargains
Price
Stocks
Teach
Depressed
Words
Teaches
Experience
Bought

More quotes by Benjamin Graham

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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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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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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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It should be remembered that a decline of 50% fully offsets a preceding advance of 100%.
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It is no difficult trick to bring a great deal of energy, study, and native ability into Wall Street and to end up with losses instead of profits. These virtues, if channeled in the wrong directions, become indistinguishable from handicaps.
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Successful investing is about managing risk, not avoiding it.
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Both individual skill (art) and chance are important factors in determining success or failure.
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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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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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There is a close logical connection between the concept of a safety margin and the principle of diversification.
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Before you place your financial future in the hands of an adviser, it's imperative that you find someone who not only makes you comfortable but whose honesty is beyond reproach.
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The investor's primary interest lies in acquiring and holding suitable securities at suitable prices.
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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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Avoid second-quality issues in making up a portfolio unless they are demonstrable bargains.
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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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Stock speculation is largely a matter of A trying to decide what B, C and D are likely to think-with B, C and D trying to do the same.
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Always remember that market quotations are there for convenience, either to be taken advantage of or to be ignored.
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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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Cartels have spread and will spread as long as the world lacks an effective mechanism by which balanced expansion may be achieved without a resulting disruption of prices.
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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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