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The ideal form of common stock analysis leads to a valuation of the issue which can be compared with the current price to determine whether or not the security is an attractive purchase.

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
Determine
Current
Issue
Ideal
Ideals
Currents
Security
Investing
Issues
Analysis
Valuation
Common
Attractive
Purchase
Whether
Leads
Stock
Form
Price
Compared

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The correct attitude of the security analyst toward the stock market might well be that of a man toward his wife. He shouldn't pay too much attention to what the lady says, but he can't afford to ignore it entirely. That is pretty much the position that most of us find ourselves vis-à-vis the stock market.
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The intelligent investor is a realist who sells to optimists and buys from pessimists.
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The beauty of periodic rebalancing is that it forces you to base your investing decisions on a simple, objective standard.
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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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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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Both individual skill (art) and chance are important factors in determining success or failure.
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The market is always making mountains out of molehills and exaggerating ordinary vicissitudes into major setbacks.
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Price statistics show clearly that instability in raw-material prices is a prime cause of instability of other prices.
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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 only thing you should do with pro forma earnings is ignore them.
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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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People who invest make money for themselves people who speculate make money for their brokers. And that, in turn, is why Wall Street perennially downplays the durable virtues of investing and hypes the gaudy appeal of speculation.
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At heart, uncertainty and investing are synonyms.
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Mr. Market's job is to provide you with prices your job is to decide whether it is to your advantage to act on them. You no not have to trade with hime just because he constantly begs you to.
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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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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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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.
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High valuations entail high risks.
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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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An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return.
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