Quotes About Strategy

An investment operation is one that can be justified on both qualitative and quantitative grounds.

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

then that it was by far the best book about investing ever written. I still think it is. To invest successfully over a

We should advise rather strongly against the initiation of a new dollar-averaging plan at the late 1964 levels, since many investors would not have the stamina to pursue such a scheme if the results soon after initiation should appear highly unfavorable.

Hence if the investor was in a maximum tax bracket higher than 30% he would have a net saving after taxes by choosing the municipal bonds; the opposite, if his maximum tax was less than 30%.

arte de la inversión de éxito radica en primer lugar en la elección de los sectores que tienen más probabilidades de crecer en el futuro, y en la identificación de las empresas más prometedoras dentro de esos sectores.

follow the behavioral and business

Know what you are doing—know your business." For the investor this means: Do not try to make "business profits" out of securities

Do not enter upon an operation—

That's why inflation is so easy to overlook—and why it's so important to measure your investing success not just by what you make, but by how much you keep after inflation.

Benjamin Graham

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

Que tratamos, entonces, de lograr con este libro? Nuestro principal objetivo consistirá en orientar al lector para prevenirle frente a las áreas de posibles errores sustanciales, y en desarrollar políticas con las que se sienta cómodo.

A long-term investor is the only kind of investor there is. Someone who can't hold on to stocks for more than a few months at a time is doomed to end up not as a victor but as a victim.

You must never delude yourself into thinking that you're investing when you're speculating. Speculating becomes mortally dangerous the moment you begin to take it seriously. You must put strict limits on the amount you are willing to wager.

dollar-cost averaging," which means simply that the practitioner invests in common stocks the same number of dollars each month or each quarter.

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

In the financial markets, hindsight is forever 20/20, but foresight is legally blind.

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.

Take the five stocks in the Dow Jones Industrial Average with the lowest stock prices and highest dividend yields. Discard the one with the lowest price. Put 40% of your money in the stock with the second-lowest price. Put 20% in each of the three remaining stocks. One year later, sort the Dow the same way and reset the portfolio according to steps 1 through 4. Repeat until wealthy. Over

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.