Benjamin Graham

Quotes are word for word from the source.

• Independent thinking

  “You are neither right nor wrong because people agree with you.”

  Our noteBenjamin Graham was discussing the importance of objective analysis over popular opinion.

• Cost of research

  “I doubt whether in most cases such extensive efforts will generate sufficiently superior selections to justify their cost.”

  Our noteGraham reflected on whether elaborate security analysis still provides a competitive edge.

• Misdirected effort

  “It is no difficult trick to bring a great deal of energy, study, and native ability into Wall Street and to end up with losses instead of profits.”

  Our noteGraham warns that hard work and talent can become handicaps if applied to the wrong investment strategies.

• Owning and holding

  “All the real money in investment will have to be made - as most of it has been in the past - not out of buying and selling but out of owning and holding securities”

  Our noteHe emphasizes that long-term value comes from holding assets rather than frequent trading.

• Mental approach

  “Intelligent investment is more a matter of mental approach than it is of technique.”

  Our noteGraham argues that a sound mental approach is the key to success in the stock market.

• Investor as businessman

  “His role is not that of a prophet but of a businessman seizing clearly evident investment opportunities.”

  Our noteHe describes the investor's task as exploiting market foolishness rather than predicting the future.

• Emotional disadvantage

  “Thus the investor who permits himself to be stampeded or unduly worried by unjustified market declines in his holdings is perversely transforming his basic advantage into a basic disadvantage.”

  Our noteHe warns against reacting emotionally to temporary price drops in sound investments.

• Market price fluctuations

  “Basically, price fluctuations have only one significant meaning for the true investor. They provide him with an opportunity to buy wisely when prices fall sharply and to sell wisely when they advance a great deal.”

  Our noteGraham explains how investors should view stock market price changes.

• Maintain control

  “Do not let anyone else run your business.”

  Our noteGraham emphasizes the importance of personal oversight in business and investment.

• Investment results

  “To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks.”

  Our noteGraham contrasts average success with exceptional performance in the market.