Quotes About Market

The individual investor should act consistently as an investor and not as a speculator

If most secondary issues tend normally to be undervalued, what reason has the investor to believe that he can profit from such a situation? For if it persists indefinitely, will he not always be in the same market position as when he bought the issue? The answer here is somewhat complicated. Substantial profits from the purchase of secondary companies at bargain prices arise in a variety of ways.

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 do not have to trade with him just because he constantly begs you to.

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.

Everything changes, including companies, regulations and the economy, but people do not, and people are what drive the market.

Benjamin Graham

what Graham called "quotational" values

He would not be far wrong if this motto read more simply: Never buy a stock immediately after a substantial rise or sell one immediately after a substantial drop. p43

Growth stocks are worth buying when their prices are reasonable, but when their price/earnings ratios go much above 25 or 30 the odds get ugly:

In late 1998, the stock of a tiny, rarely traded building-maintenance company, Temco Services, nearly tripled in a matter of minutes on record-high volume. Why? In a bizarre form of financial dyslexia, thousands of traders bought Temco after mistaking its ticker symbol, TMCO, for that of Ticketmaster Online (TMCS), an Internet darling whose stock began trading publicly for the first time that day.8 Oscar Wilde joked that a cynic "knows the price of everything, and the value of nothing.

The intelligent investor is a realist who sells to optimists and buys from pessimists. The future value of every investment is a function of its present price.

Because so few investors have the guts to cling to stocks in a falling market, Graham insists that everyone should keep a minimum of 25% in bonds. That cushion, he argues, will give you the courage to keep the rest of your money in stocks even when stocks stink.

Benjamin Graham

Unlike most people, many of the best professional investors first get interested in a company when its share price goes down, not up.

To enjoy a reasonable chance for continued better than average results, the investor must follow policies which are (1) inherently sound and promising, and (2) not popular on Wall Street.

A great company is not a great investment if you pay too much for the stock.

Jak jsme se pou?ili? V krátkém období se trh Grahamovým princip?m vysmívá, ale v dlouhém období se jim vždy dostane rehabilitace. Jestliže nakupujete akcie jen proto, že jejich cena roste - místo toho, abyste se ptali, zda se zvyÅ¡ue fundamentální hodnota spole?nosti-eminenta - bude vás to dÃ…â"¢íve nebo pozdÄ›ji Å¡erednÄ› mrzet. To není jen pravdÄ›podobnost. To je jistota.

He should never buy a stock because it has gone up or sell one because it has gone down. He would not be far wrong if this motto read more simply: "Never buy a stock immediately after a substantial rise or sell one immediately after a substantial drop.

First of all, recognize that an index fund—which owns all the stocks in the market, all the time, without any pretense of being able to select the "best" and avoid the "worst"—will beat most funds over the long run.

Antes de lanzarse a una incursión de ese tipo, el inversor debería estar seguro de sí mismo y de sus asesores, en especial a la hora de determinar si tienen una clara concepción de las diferencias existentes entre la inversión y la especulación y entre el precio de mercado y el valor subyacente.

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. In the end, what matters isn't crossing the finish line before anybody else but just making sure that you do cross it.

The investor should impose some limit on the price he will pay for an issue in relation to its average earnings over, say, the past seven years. We suggest that this limit be set at 25 times such average earnings, and not more than 20 times those of the last twelve-month period.

Experience teaches that the time to buy preferred stocks is when their price is unduly depressed by temporary adversity. (At such times they may be well suited to the aggressive investor but too unconventional for the defensive investor.)

The intelligent investor realizes that stocks become more risky, not less, as their prices rise—and less risky, not more, as their prices fall. The intelligent investor dreads a bull market, since it makes stocks more costly to buy. And conversely (so long as you keep enough cash on hand to meet your spending needs), you should welcome a bear market, since it puts stocks back on sale.