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

More quotes by Benjamin Graham

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Mr. Market does not always price stocks the way an appraiser or a private buyer would value a business. Instead, when stocks are going up, he happily pays more than their objective value and, when they are going down, he is desperate to dump them for less than their true worth.
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A defensive investor can always prosper by looking patiently and calmly through the wreckage of a bear market.
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The investor's primary interest lies in acquiring and holding suitable securities at suitable prices.
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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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High valuations entail high risks.
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The chief obstacle to success lies in the stubborn fact that if the favorable prospects of a concern are clearly apparent they are almost always reflected already in the current price of the stock. Buying such an issue is like betting on a topheavy favorite in a horse race. The chances may be on your side, but the real odds are against you.
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The sillier the market's behavior, the greater the opportunity for the business like investor.
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Good managements produce a good average market price, and bad managements produce bad market prices.
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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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Knowledge is only one ingredient on arriving at a stock's proper price. The other ingredient, fully as important as information, is sound judgment.
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Why should the cotton growers suffer if there is shortage of wheat?
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The market is always making mountains out of molehills and exaggerating ordinary vicissitudes into major setbacks.
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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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Avoid second-quality issues in making up a portfolio unless they are demonstrable bargains.
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The distinction between investment and speculation in common stocks has always been a useful one and its disappearance is cause for concern.
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The only thing you should do with pro forma earnings is ignore them.
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Do not let anyone else run your business
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Even the most conservative must realize that the recent transformation of surplus from an individual to a national disaster implies a scathing indictment of our capitalist system as it has now developed.
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The thing that I have been emphasizing in my own work for the last few years has been the group approach. To try to buy groups of stocks that meet some simple criterion for being undervalued-regardless of the industry and with very little attention to the individual company.
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You must never delude yourself into thinking that you're investing when you're speculating.
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