A Quote by Benjamin Graham
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.
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The investor has the benefit of the stock market's daily and changing appraisal of his holdings, 'for whatever that appraisal may be worth', and, second, that the investor is able to increase or decrease his investment at the market's daily figure - 'if he chooses'. Thus the existence of a quoted market gives the investor certain options which he does not have if his security is unquoted. But it does not impose the current quotation on an investor who prefers to take his idea of value from some other source.
I feel no shame at being found still owning a share when the bottom of the market comes…I would go much further than that. I should say that it is from time to time the duty of a serious investor to accept the depreciation of his holdings with equanimity and without reproaching himself. … An investor…should be aiming primarily at long-period results, and should be solely judged by these.
The investor with a portfolio of sound stocks should expect their prices to fluctuate and should neither be concerned by sizable declines nor become excited by sizable advances. He should always remember that market quotations are there for his convenience, either to be taken advantage of or to be ignored.
Rip Van Winkle would be the ideal stock market investor: Rip could invest in the market before his nap and when he woke up 20 years later, he'd be happy. He would have been asleep through all the ups and downs in between. But few investors resemble Mr. Van Winkle. The more often an investor counts his money - or looks at the value of his mutual funds in the newspaper - the lower his risk tolerance.
The basic tenet of black consciousness is that the black man must reject all value systems that seek to make him a foreigner in the country of his birth and reduce his basic human dignity.
How much reverence has a noble man for his enemies!--and such reverence is a bridge to love.--For he desires his enemy for himself, as his mark of distinction; he can endure no other enemy than one in whom there is nothing to despise and very much to honor! In contrast to this, picture "the enemy" as the man of ressentiment conceives him--and here precisely is his deed, his creation: he has conceived "the evil enemy," "the Evil One," and this in fact is his basic concept, from which he then evolves, as an afterthought and pendant, a "good one"--himself!
I don't find an advantage or disadvantage in being a woman when reporting. What little advantages there might be in some instances is cancelled out by the basic lack of lavatories round the world for women.
The hardest thing over the years has been having the courage to go against the dominant wisdom of the time to have a view that is at variance with the present consensus and bet that view. The hard part is that the investor must measure himself not by his own perceptions of his performance, but by the objective measure of the market. The market has its own reality. In an immediate emotional sense the market is always right so if you take a variant point of view you will always be bombarded for some time by conventional wisdom as expressed by the market.
A price decline is of no real importance to the bona fide investor unless it is either very substantial say, more than a third from cost or unless it reflects a known deterioration of consequence in the company's position. In a well-defined bear market many sound common stocks sell temporarily at extraordinary low prices. It is possible that the investor may then have a paper loss of fully 50 per cent on some of his holdings, without any convincing indication that the underlying values have been permanently affected.
It is remarkable how a man cannot summarize his thoughts in even the most general sort of way without betraying himself completely, without putting his whole self into it, quite unawares, presenting as if in allegory the basic themes and problems of his life.
Berkshire was built on the eternal verities: basic mathematics, basic horse sense, basic fear, and basic diagnosis of human nature to make predictions regarding human behavior. We stuck to the basics with a certain amount of discipline and it has worked out quite well.
Basic would never have surfaced because there was always a language better than Basic for that purpose. That language was Joss, which predated Basic and was beautiful. But Basic happened to be on a GE timesharing system that was done by Dartmouth, and when GE decided to franchise that, it started spreading Basic around just because it was there, not because it had any intrinsic merits whatsoever.
we have complaints that institutional dominance of the stock market has put 'the small investor at a disadvantage because he can't compete with the trust companies' huge resources, etc. The facts are quite the opposite. It may be that the institutions are better equipped than the individual to speculate in the market.But I am convinced that an individual investor with sound principles, and soundly advised, can do distinctly better over the long pull than large institutions.
There's a reason you can learn from everything: you have basic wisdom, basic intelligence, and basic goodness.
I can see more naturalness in basic blues, basic R & B, basic rock 'n' roll.
The true investor... will do better if he forgets about the stock market and pays attention to his dividend returns and to the operation results of his companies.
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