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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.

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
Without
Investing
Take
Block
Market
Resembles
Institutions
Blocks
Large
Laundry
Huge
Washing
Others
Rhyme
Reason
Stock

More quotes by Benjamin Graham

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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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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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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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Buy when most people, including experts, are pessimistic, and sell when they are actively optimistic.
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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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The chief losses to investors come from the purchase of low-quality securities at times of favorable business conditions.
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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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The investor should be aware that even though safety of its principal and interest may be unquestioned, a long term bond could vary widely in market price in response to changes in interest rates.
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We urge the beginner in security buying not to waste his efforts and his money in trying to beat the market. Let him study security values and initially test out his judgment on price versus value with the smallest possible sums.
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The sillier the market's behavior, the greater the opportunity for the business like investor.
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The only thing you should do with pro forma earnings is ignore them.
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You must never delude yourself into thinking that you're investing when you're speculating.
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Always buy your straw hats in the Winter
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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 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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A defensive investor can always prosper by looking patiently and calmly through the wreckage of a bear market.
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To see how much a company is truly earning on the capital it deploys in its businesses, look beyond EPS to Return on Invested Capital (ROIC).
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It is worth pointing out that assuredly not more than one person out of a hundred who stayed in the market after after 1925 emerged from it with a net profit and that the speculative losses taken were appalling.
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Many progressive economists insist that gold is now in essentially the same position as silver and that the arguments the simon-pure gold advocates use against the white metal can be directed with equal effect against their own fetish.
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