A Quote by Benjamin Graham
The intelligent investor should recognize that market panics can create great prices for good companies and good prices for great companies.
Related Quotes
To economists, prices serve as crucial signals to producers and consumers. In a regulated market, the state sets prices high enough for private companies to cover their costs and earn a guaranteed profit for their investors. But in a deregulated market, prices should vary with demand and supply.
A market downturn, doesn't bother us. For us and our long term investors, it is an opportunity to increase our ownership of great companies with great management at good prices. Only for short term investors and market timers is a correction not an opportunity.
Bad companies are destroyed by crisis. Good companies survive them. Great individuals, like great companies, find a way to transform weakness into strength.
I've made money over the years by buying into good companies, run by good people, at attractive prices. And I don't try and make it out of buying into the market at one point and selling at another point.
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.
There is no such thing as agflation. Rising commodity prices, or increases in any prices, do not cause inflation. Inflation is what causes prices to rise. Of course, in market economies, prices for individual goods and services rise and fall based on changes in supply and demand, but it is only through inflation that prices rise in aggregate.
Good companies will meet needs; great companies will create markets.
There is a natural tendency for investors to devote a significant majority of their time to finding new ideas. After all, uncovering great companies selling at great prices is the lifeblood of successful investing. But in the never-ending quest for the next great idea, investors often give short shrift to their existing investments.
If prices drop, we have to protect farmers from distress; if prices rise, we should be ready to pay market rates.
We compete with very large companies. These are companies like Walmart and Target and Kroger and some very successful digital companies like eBay and Etsy and Wayfair, and we don't have the ability to raise prices in any kind of unfettered way.
Bad companies are destroyed by crisis, Good companies survive them, Great companies are improved by them.
On what high-performing companies should be striving to create: A great place for great people to do great work.
Everyone has the idea of owning good companies. The problem is that they have high prices in relations to assets and earnings, and that takes all of the fun out of the game.
Tech stocks were the cubic zirconium of the market. They looked good and were sexy, but they just were a way for the company selling them to make money. That's always going to be transient in terms of the stock market. What's real is that companies have to compete. Technology used well is a great tool to enable that if only because most companies dont use technologies well.
Speculation in oil stock companies was another great evil ... From the first, oil men had to contend with wild fluctuations in the price of oil. ... Such fluctuations were the natural element of the speculator, and he came early, buying in quantities and holding in storage tanks for higher prices. If enough oil was held, or if the production fell off, up went the price, only to be knocked down by the throwing of great quantities of stocks on the market.
Medicare should be allowed to negotiate with drug companies for lower prices on prescriptions.
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