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It's nonsensical to derive a price/earnings ratio by dividing the known current price by unknown future earnings.

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
Currents
Ratio
Investing
Earnings
Price
Ratios
Known
Derive
Future
Dividing
Earning
Current
Unknown
Nonsensical

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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 chief problem - and even his worst enemy - is likely to be himself.
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It is absurd to think that the general public can ever make money out of market forecasts.
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Abnormally good or abnormally bad conditions do not last forever.
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Successful investing professionals are disciplined and consistent and they think a great deal about what they do and how they do it.
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The market is always making mountains out of molehills and exaggerating ordinary vicissitudes into major setbacks.
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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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Do not let anyone else run your business
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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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Only in the exceptional case, where the integrity and competence of the advisers have been thoroughly demonstrated, should the investor act upon the advice of others without understanding and approving the decision made.
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Individuals who cannot master their emotions are ill-suited to profit from the investment process.
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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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An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return.
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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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Price statistics show clearly that instability in raw-material prices is a prime cause of instability of other prices.
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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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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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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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