A Quote by Benjamin Graham
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.
Related Quotes
The intelligent investor is a realist who sells to optimists and buys from pessimists.
In an ideal world, the intelligent investor would hold stocks only when they are cheap and sell them when they become overpriced, then duck into the bunker of bonds and cash until stocks again become cheap enough to buy.
I think I'm a realist. Which people who don't like me consider to be pessimism. It isn't pessimism at all. If I was a pessimist I wouldn't get up, I wouldn't shave, I wouldn't watch Batman at 7:30 a.m. Pessimists just don't do that sort of thing.
As a bull market turns into a bear market, the new pros turn into optimists, hoping and praying the bear market will become a bull and save them. But as the market remains bearish, the optimists become pessimists, quit the profession, and return to their day jobs. This is when the real professional investors re-enter the market.
True humility is intelligent self-respect which keeps us from thinking too highly or too meanly of ourselves. It makes us mindful of the nobility God meant us to have. Yet it makes us modest by reminding us how far we have come short of what we can be.
Chile is a country that sells cheap and buys expensive, because we have to pay for manufactured goods from countries at much higher levels of development.
If there are not too many value stocks that I can find, the market isn't all that cheap.
The chief problem with the individual investor: He or she typically buys when the market is high and thinks it's going to go up, and sells when the market is low and thinks it's going to go down.
The investor is neither smart not richer when he buys in an advancing market and the market continues to rise. That is true even when he cashes in a goodly profit, unless either (a) he is definitely through with buying stocks an unlikely story or (b) he is determined to reinvest only at considerably lower levels. In a continuous program no market profit is fully realized until the later reinvestment has actually taken place, and the true measure of the trading profit is the difference between the previous selling level and the new buying level.
True humility is intelligent self respect which keeps us from thinking too highly or too meanly of ourselves. It makes us modest by reminding us how far we have come short of what we can be.
It's too expensive, that's the thing nobody wants to talk about. It is too expensive to make movies. That's not true, it is too expensive to market movies. Making movies is not.
There are three important principles to Graham's approach. [The first is to look at stocks as fractional shares of a business, which] gives you an entirely different view than most people who are in the market. [The second principle is the margin-of-safety concept, which] gives you the competitive advantage. [The third is having a true investor's attitude toward the stock market, which] if you have that attitude, you start out ahead of 99 percent of all the people who are operating in the stock market - it's an enormous advantage.
I cannot always sympathize with that demand which we hear so frequently for cheap things. Things may be too cheap. They are too cheap when the man or woman who produces them upon the farm or the man or woman who produces them in the factory does not get out of them living wages with a margin for old age and for a dowry for the incidents that are to follow. I pity the man who wants a coat so cheap that the man or woman who produces the cloth or shapes it into a garment will starve in the process.
Optimists are right. So are pessimists. It's up to you to choose which you will be.
Some people argue against both optimism and pessimism in favor of so-called realistic thinking. They distrust optimism on the grounds that it causes us to sugercoat problems, discount risks, and exaggerate the upside. Pessimism, on the other hand, is criticized as too downbeat, de-energizing, and generally damaging in its impact. This crown prefers realism as the neutral and objective middle ground.
What makes these creatures so awful is the feeling that they can use us in ways too horrible to imagine-and yet, we DO imagine them, which makes it worse than seeing it.
Related Authors
Adam Smith Quotes
Scottish
Economist
Alan Greenspan Quotes
American
Economist
Friedrich August von Hayek Quotes
Austrian
Economist
John Kenneth Galbraith Quotes
American
Economist
John Maynard Keynes Quotes
English
Economist
Joseph Stiglitz Quotes
American
Economist
Ludwig von Mises Quotes
Austrian
Economist
Milton Friedman Quotes
American
Economist
Muhammad Yunus Quotes
Bangladeshi
Economist
Murray Rothbard Quotes
American
Economist
Paul Craig Roberts Quotes
American
Economist
Paul Krugman Quotes
American
Economist
Richard Thaler Quotes
American
Economist
Robert Reich Quotes
American
Economist
Thomas Sowell Quotes
American
Economist
Walter E. Williams Quotes
American
Economist