Quotes About Finance

The future value of every investment is a function of its present price. The higher the price you pay, the lower your return will be.

For most investors, allocating at least 10% of your retirement assets to TIPS is an intelligent way to keep a portion of your money absolutely safe—and entirely beyond the reach of the long, invisible claws of inflation.

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 one principle that applies to nearly all these so-called "technical approaches" is that one should buy because a stock or the market has gone up and one should sell because it has declined. This is the exact opposite of sound business sense everywhere else, and it is most unlikely that it can lead to lasting success on Wall Street.

Investment must always consider the price as well as the quality of the security.

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

Is the stock market riskier today than two years ago simply because prices are higher? The answer is no." But the answer is yes. It always has been. It always will be.

The defensive investor must confine himself to the shares of important companies with a long record of profitable operations and in strong financial condition.

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

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.

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

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.

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

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.

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:

Hemos visto ganar y conservar mucho más dinero a «personas comunes» que estaban temperamentalmente bien dotadas para el proceso de inversión que a otras personas que carecían de esta buena predisposición anímica, aunque tuviesen un gran conocimiento de las finanzas, la contabilidad y la historia del mercado de valores.

Obvious prospects for physical growth in a business do not translate into obvious profits for investors

we say that to have a true investment there must be present 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.

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.

Good mortgage-bond funds are available from Vanguard, Fidelity, and Pimco. But if a broker ever tries to sell you an individual mortgage bond or "CMO," tell him you are late for an appointment with your proctologist.