A Quote by Benjamin Graham
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.
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In the short-run, the market is a voting
machine - reflecting a voter-registration test that requires only
money, not intelligence or emotional stability - but in the long-
run, the market is a weighing machine.
Your earning ability is largely determined by the perception of excellence, quality, and value that others have of you and what you do. The market only pays excellent rewards for excellent performance. It pays average rewards for average performance, and it pays below average rewards or unemployment for below average performance.
Traders can cause short-term volatility. In the long run, the market must revert to a sensible price/earnings multiple.
What we do is we test what works on Wall Street. And sometimes it is earnings momentum, and sometimes it's earnings surprises. Sometimes it's price-to-sales cash flow, and then we put together our stock selection models.
Life is actually a series of tests. It's a social test, a happiness test, a business success test. You'd like to get A's in all of them.
An investor in Duke Energy is expecting a dividend payment. That's roughly 70 to 75 percent of the earnings I produce. The business that goes with that level of dividend is a business that has more predictability, more stability.
Calculate a stock's price/earnings ratio yourself, using Graham's formula of current price divided by average earnings over the past three years.
Being captive to quarterly earnings isn't consistent with long-term value creation. This pressure and the short term focus of equity markets make it difficult for a public company to invest for long-term success, and tend to force company leaders to sacrifice long-term results to protect current earnings.
If we observe the performance of only those funds that remain active, we will tend to find that the average performance of the surviving funds exceeds that of the market.
I buy stocks when they are battered. I am strict with my discipline. I always buy stocks with low price-earnings ratios, low price-to-book value ratios and higher-than-average yield. Academic studies have shown that a strategy of buying out-of-favor stocks with low P/E, price-to-book and price-to-cash flow ratios outperforms the market pretty consistently over long periods of time.
The test, surely, of a creed is not the ability of those who accept it to announce their faith; its test is its ability to change their behavior in the ordinary round of daily life. Judged by that test, I know no religion that has a moral claim upon the allegiance of men.
You put the pressure on this guy. You test his conditioning. You test the cardio. You test the heart, the will. That's how you beat RDA.
I was never a prisoner of any theory. What guided me were reason and reality. The acid test I applied to every theory or scheme was: Would it work? The acid test is in performance, not promises. It is not from weakness that one commands respect. As long as the leaders take care of their people, they will obey the leaders.
You should have to pass an IQ test before you breed. You have to take a driving test to operate vehicles and an SAT test to get into college. So why don’t you have to take some sort of test before you give birth to children? When I am President, that’s the first rule I will institute.
President Bush announced his new economic plan. The centerpiece was a proposed repeal of the dividend tax on stocks, a boon that could be worth millions of dollars to average Americans. Well, average stock-owning Americans. Technically, Americans who own a significant amount of shares in dividend-dealing companies. Well, rich people, that's what I'm trying to say. They're going to do really well with this.
I absolutely hated 'Gattaca.' I left the theater shaking my head because the science in the film was just terrible. No genetic test will ever tell you how many heartbeats you have left. No genetic test will ever be more accurate in telling an employer how well you'll do at a job than your performance at a past job would be.
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