Quote

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.

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
Sells
Bonds
Ideals
Ducks
Intelligent
Cheap
Overpriced
Hold
Investors
Bunker
Become
Cash
Bunkers
Enough
Ideal
Investor
Would
Investing
Duck
World
Sell
Stocks

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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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Buy when most people, including experts, are pessimistic, and sell when they are actively optimistic.
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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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If we assume that there are normal or standard income results to be obtained from investing money in securities, then the role of the adviser can be more readily established. He will use his superior training and experience to protect his clients against mistakes and to make sure that they obtain the results to which their money is entitled.
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Every corporate security may be best viewed, in the first instance, as an ownership interest in, or a claim against, a specific business enterprise.
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Before you invest, you must ensure that you have realistically assessed your probability of being right and how you will react to the consequences of being wrong.
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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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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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The investor's chief problem - and even his worst enemy - is likely to be himself.
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Both individual skill (art) and chance are important factors in determining success or failure.
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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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The best values today are often found in the stocks that were once hot and have since gone cold.
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High valuations entail high risks.
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An investor calculates what a stock is worth, based on the value of its businesses.
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