Quote

Knowledge is only one ingredient on arriving at a stock's proper price. The other ingredient, fully as important as information, is sound judgment.

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
Sound
Ingredients
Important
Stock
Proper
Price
Fully
Judgment
Information
Ingredient
Knowledge
Arriving

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You must never delude yourself into thinking that you're investing when you're speculating.
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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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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 the short run, the market is a voting machine, but in the long run it is a weighing machine.
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The market is a pendulum that forever swings between unsustainable optimism (which makes stocks too expensive) and unjustified pessimism (which makes them too cheap). The intelligent investor is a realist who sells to optimists and buys from pessimists.
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High valuations entail high risks.
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It's nonsensical to derive a price/earnings ratio by dividing the known current price by unknown future earnings.
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Successful investing is about managing risk, not avoiding it.
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The individual investor should act consistently as an investor and not as a speculator. This means ... that he should be able to justify every purchase he makes and each price he pays by impersonal, objective reasoning that satisfies him that he is getting more than his money's worth for his purchase.
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Nothing important on Wall Street can be counted on to occur exactly in the same way as it happened before.
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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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Both individual skill (art) and chance are important factors in determining success or failure.
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