Quotes
Benjamin Graham
To invest successfully over a lifetime does
not require a stratospheric IQ, unusual business insights, or inside
information. What’s needed is a sound intellectual framework for making
decisions and the ability to keep emotions from corroding that framework.
The intelligent investor is a realist who
sells to optimists and buys from pessimists.
The defensive (or passive) investor will
place chief emphasis on the avoidance of serious mistakes or losses. His second
aim will be freedom from effort, annoyance, and the need for making frequent
decisions.
People who invest make money for themselves;
people who speculate make money for their brokers. And that, in turn, is why
Wall Street perennially downplays the durable virtues of investing and hypes the
gaudy appeal of speculation.
Thousands of people have tried, and the
evidence is clear: The more you trade, the less you keep.
It should be remembered that a decline of 50%
fully offsets a preceding advance of 100%.
The intelligent investor shouldn’t ignore Mr.
Market entirely. Instead, you should do business with him- but only to the
extent that it serves your interests.
Mr. Market’s job is to provide you with
prices; your job is to decide whether it is to your advantage to act on them.
You no not have to trade with him just because he constantly begs you to.
Even defensive portfolios should be changed
from time to time, especially if the securities purchased have an apparently
excessive advance and can be replaced by issues much more reasonable priced.
Diversification is an established tenet of
conservative investment.
DYI
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