Benjamin Graham
Benjamin Graham
Benjamin Grahamwas a British-born American economist and professional investor. Graham is considered the father of value investing, an investment approach he began teaching at Columbia Business School in 1928 and subsequently refined with David Dodd through various editions of their famous book Security Analysis. Graham had many disciples in his lifetime, a number of whom went on to become successful investors themselves. Graham's most well-known disciples include Warren Buffett, William J. Ruane, Irving Kahn and Walter J. Schloss, among others...
NationalityAmerican
ProfessionEntrepreneur
Date of Birth8 May 1894
CountryUnited States of America
Benjamin Graham quotes about
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.
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.
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.
Always remember that market quotations are there for convenience, either to be taken advantage of or to be ignored.
As in roulette, same is true of the stock trader, who will find that the expense of trading weights the dice heavily against him.
It is absurd to think that the general public can ever make money out of market forecasts.
Those with the enterprise lack the money and those with the money lack the enterprise to buy stocks when they are cheap.
In most cases the favorable price performance will be accompanied by a well-defined improvement in the average earnings, in the dividend, and in the balance-sheet position. Thus in the long run the market test and the ordinary business test of a successful equity commitment tend to be largely identical.
Diversification is an established tenet of conservative investment.
Obvious prospects for physical growth in a business do not translate into obvious profits for investors.
The intelligent investor is likely to need considerable will power to keep from following the crowd.
Buy when most people, including experts, are pessimistic, and sell when they are actively optimistic,
I quickly convinced myself that the true key to material happiness lay in a modest standard of living which could be achieved with little difficulty under almost all economic conditions.
The investor's chief problem - and even his worst enemy - is likely to be himself.