Top Benjamin Graham Quotes on Value Investing : Benjamin Graham is a successful value investor of all time and gives some freaking amazing quotes throughout his life. Basically, Benjamin Graham was a British born American investor and professor. He is known as the ‘father of value investing ‘and ‘dean of Wall Street’. He wrote two founding texts in neoclassical investing as Security “Analysis with David Dodd” and “The Intelligent Investor”.
Benjamin Graham Quotes on value investing are as follows
1. “You must never delude yourself into thinking that you’re investing when you’re speculating.”There are important rules of value investing. We need to create our own checklist of what is important in stock and stick to the checklist. Make sure that all the investments are backed with quantitative and qualitative analysis and not based on speculation alone.
2. “Buy not on optimism, but on arithmetic.”It has the same meaning as to quote above but make sure that your analysis is based on opinions, news articles, and speculation that stick to the numbers. The numbers can get you far if you’re utilizing a great tool as a Value tap indicator.
3. “Individuals who cannot master their emotions are ill-suited to profit from the investment process.”You should be aware of your risk tolerance before you start to invest. Buy for the future don’t be that person that goes to the grocery store every day to get through the week. Take some time, make a list, and plan out what you need, and then buy groceries to make sure that you don’t check your inventory every day.
4. “The best way to measure your investing success is not by whether you’re beating the market but by whether you’ve put in place a financial plan and a behavioral discipline that are likely to get you where you want to go.”Your goals should be how you benchmark yourself than outperforming an index. You need to focus on your own goals. Nobody starts investing as a game to “beat the market” you start investing to set up for financial freedom at a later date.
5. “The true investor will do better if he forgets about the stock market and pays attention to his dividend returns and to the operating results of his companies.”It is easy to focus on what the stock price is doing and makes buy/sell decision based off of that you cannot let that dictate your portfolio. Focus on the financials of the company and avoid buying the rumor and selling the news.
6. “To have a true investment, there must be a true margin of safety. And a true margin of safety is one that can be demonstrated by figures, by persuasive reasoning, and by reference to a body of actual experience.”This is the best one to end on and if you listened to the Investing for Beginners Podcast then you know exactly why.
7. “To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks.”
8. “In the world of securities, courage becomes the supreme virtue after adequate knowledge and a tested judgment are at hand.”
9. “You must never delude yourself into thinking that you’re investing when you’re speculating.”
10. “Successful investing is about managing risk, not avoiding it.” Benjamin Graham
11. “Buy not on optimism, but on arithmetic.”
12. “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.”
13. “Individuals who cannot master their emotions are ill-suited to profit from the investment process.”
14. “Never mingle your speculative and investment operations in the same account nor in any part of your thinking.”
15. “Successful investing professionals are disciplined and consistent and they think a great deal about what they do and how they do it.”
16. “The individual investor should act consistently as an investor and not as a speculator.”
17. “The market is a pendulum that forever swings between unsustainable optimism and unjustified pessimism. The intelligent investor is a realist who sells to optimists and buys from pessimists.”
18. “The investor who permits him to be stampeded or unduly worried by unjustified market declines in his holdings is perversely transforming his basic advantage into a basic disadvantage.”
19. “While enthusiasm may be necessary for great accomplishments elsewhere, on Wall Street, it almost invariably leads to disaster.”
20. “By developing your discipline and courage, you can refuse to let other people’s mood swings govern your financial destiny. In the end, how your investments behave is much less important than how you behave.”
21. “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.”
