Abnormally good or abnormally bad conditions do not last forever. Benjamin Graham More Quotes by Benjamin Graham More Quotes From Benjamin Graham In security analysis the prime stress is laid upon protection against untoward events. We obtain this protection by insisting upon margins of safety, or values well in excess of the price paid. Benjamin Graham safety events stress Always remember that market quotations are there for convenience, either to be taken advantage of or to be ignored. Benjamin Graham investing ignored taken Although there are good and bad companies, there is no such thing as a good stock; there are only good stock prices, which come and go. Benjamin Graham bad-company investing good-and-bad The investor's chief problem - and even his worst enemy - is likely to be himself. Benjamin Graham worst-enemy greed money The intelligent investor gets interested in big growth stocks not when they are at their most popular - but when something goes wrong. Benjamin Graham investing growth intelligent Obvious prospects for physical growth in a business do not translate into obvious profits for investors. Benjamin Graham investing profit growth 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). Benjamin Graham investing return looks Wall Street people learn nothing and forget everything. Benjamin Graham forget-everything wall people 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. Benjamin Graham investing advantage jobs 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. Benjamin Graham effort mistake loss The best values today are often found in the stocks that were once hot and have since gone cold. Benjamin Graham gone hot today Stocks can be dynamite. Benjamin Graham dynamite If I have noticed anything over these 60 years on Wall Street, it is that people do not succeed in forecasting what`s going to happen to the stock market. Benjamin Graham wall people years A price decline is of no real importance to the bona fide investor unless it is either very substantial say, more than a third from cost or unless it reflects a known deterioration of consequence in the company's position. In a well-defined bear market many sound common stocks sell temporarily at extraordinary low prices. It is possible that the investor may then have a paper loss of fully 50 per cent on some of his holdings, without any convincing indication that the underlying values have been permanently affected. Benjamin Graham real sound loss Though business conditions may change, corporations and securities may change, and financial institutions and regulations may change, human nature remains the same. Thus the important and difficult part of sound investment, which hinges upon the investor's own temperament and attitude, is not much affected by the passing years. Benjamin Graham important attitude years Nearly everyone interested in common stocks wants to be told by someone else what he thinks the market is going to do. The demand being there, it must be supplied. Benjamin Graham demand want thinking The intelligent investor shouldn't ignore Mr. Market entirely. Instead, you should do business with him- but only to the extent that it serves your interests. Benjamin Graham investing intelligent should Unusually rapid growth cannot keep up forever; when a company has already registered a brilliant expansion, its very increase in size makes a repetition of its achievement more difficult. Benjamin Graham achievement growth forever In the financial markets, hindsight is forever 20/20, but foresight is legally blind. And thus, for most investors, market timing is a practical and emotional impossibility. Benjamin Graham investing emotional forever Real investment risk is measured not by the percent that a stock may decline in price in relation to the general market in a given period, but by the danger of a loss of quality and earnings power through economic changes or deterioration in management. Benjamin Graham risk real loss
