71 timeless quotes on investing and life
"In the short run, the market is a voting machine but in the long run, it is a weighing machine."
— Benjamin Graham
"The investor's chief problem -- and even his worst enemy -- is likely to be himself."
— Benjamin Graham
"The margin of safety is always dependent on the price paid."
— Benjamin Graham
"The investor should impose some limit on the price he will pay for an issue in relation to its earnings. A strong balance sheet is the first requirement for any investment."Read Full Analysis →
"The company should have a long record of paying dividends and no earnings deficit in the last five years. Consistent earnings are more important than growing earnings."Read Full Analysis →
"An uninterrupted record of paying dividends for at least 20 years is a positive quality factor. Dividends signal management confidence in future earnings."Read Full Analysis →
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks. The intelligent investor needs to stay within areas they can analyze."Read Full Analysis →
"The investor's chief problem — and even his worst enemy — is likely to be himself. Before deciding on an investment, you must first know what kind of investor you are."Read Full Analysis →
"The defensive investor should confine his holdings to the shares of important companies with long records of profitable operations and in strong financial condition."Read Full Analysis →
"Buy stocks of companies selling at less than their net current asset value — that is, below the value of current assets after deducting all prior obligations."Read Full Analysis →
"There is a close logical connection between the concept of a safety margin and the principle of diversification. Even with a margin in the investor's favor, an individual security may work out badly."Read Full Analysis →
"Current price should not be more than 1.5 times the book value last reported. A moderately low ratio of price to book value is another criterion for the defensive investor."Read Full Analysis →
"The investor should sell when his stock has risen to a level where the price no longer represents a bargain relative to its intrinsic value."Read Full Analysis →
"We recommend that the investor's portfolio of common stocks should be tested for quality by applying suitable standards to each holding. Periodic review and rebalancing is essential."Read Full Analysis →
"Imagine having a partner named Mr. Market who offers to buy or sell shares at a different price every day. Sometimes his price is reasonable, but often it is absurdly high or low. You are free to ignore him."Read Full Analysis →
"The intrinsic value of a stock is the value justified by the facts — the assets, earnings, dividends, and definite prospects. This value is independent of the market price."Read Full Analysis →
"Confronted with the need to estimate future growth, I am ready to adopt as a rule of thumb a margin of safety of about 50%. The function of the margin of safety is to render unnecessary an accurate estimate of the future."Read Full Analysis →
"The investor cannot prudently judge management merely by the results. He must look at management's character, their honesty, and their treatment of stockholders."Read Full Analysis →
"The individual investor should consistently act as an investor and not as a speculator. Investment is most intelligent when it is most businesslike."Read Full Analysis →
"Have the courage of your knowledge and experience. If you have formed a conclusion from the facts and if you know your judgment is sound, act on it — even though others may hesitate or differ."Read Full Analysis →
"We recommend selecting stocks using quantitative criteria: earnings-to-price yield, dividend record, balance sheet strength, and moderate price-to-earnings ratios."Read Full Analysis →
"The true investor does his best work in a declining market, because he seeks values. Real opportunities in stocks come when they are temporarily unloved by the market."Read Full Analysis →
"We suggested as a minimum requirement that the total equity be at least half the total capitalization, and that total current assets should be at least equal to total current liabilities."Read Full Analysis →
"Individuals who cannot master their emotions are ill-suited to profit from the investment process. The investor's chief problem — and even his worst enemy — is likely to be himself."Read Full Analysis →
"You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right."Read Full Analysis →
"The market is there to serve you, not to guide you. It is folly to sell because the market has gone down. The real investor does not sell out to Mr. Market."Read Full Analysis →
"In the short run the market is a voting machine but in the long run it is a weighing machine. Price eventually converges to value, but the timing is unpredictable."Read Full Analysis →
"The intelligent investor is a realist who sells to optimists and buys from pessimists. Investment is most successful when it is most businesslike."Read Full Analysis →
"The defensive investor will place his chief emphasis on the avoidance of serious mistakes or losses. The enterprising investor will devote time and care to the selection of securities that are both sound and more attractive than average."Read Full Analysis →
"The defensive investor needs to seek professional advice."Read Full Analysis →
"The investor should be guided by long-term considerations and not by short-term market fluctuations."Read Full Analysis →
"The investor should periodically rebalance his portfolio to maintain the desired asset allocation."Read Full Analysis →
"The defensive investor will avoid the temptation to stray into the unknown in search of higher returns."Read Full Analysis →
"An index fund is the best choice for the investor who cannot or does not want to devote time to security selection."Read Full Analysis →
"The simplest policy for the defensive investor is to invest a fixed amount at regular intervals."Read Full Analysis →
"The defensive investor must confine himself to the shares of important companies with a long record of profitable operations."Read Full Analysis →
"Qualitative factors are those related to the nature of the business, the competitive situation, and management."Read Full Analysis →
"There should have been an increase of at least one-third in per-share earnings over the past ten years."Read Full Analysis →
"The company should have annual sales of at least $100 million for an industrial company."Read Full Analysis →
"Some payment of dividend must have been made in every year for at least the past 20 years."Read Full Analysis →
"Long-term debt should not exceed working capital."Read Full Analysis →
"Current assets should be at least twice current liabilities."Read Full Analysis →
"The product of PE and PB should not exceed 22.5."Read Full Analysis →
"Current price should not be more than 1.5 times the book value last reported."Read Full Analysis →
"The current price should not be more than 15 times average earnings of the past three years."Read Full Analysis →
"A record of continuous dividend payments for at least 20 years is a favorable factor."Read Full Analysis →
"Earning power is the key element in the valuation of a common stock."Read Full Analysis →
"The analyst's conclusions must always rest upon figures and upon established tests and standards."Read Full Analysis →
"The investor must be prepared financially and psychologically for the possibility of wide price fluctuations."Read Full Analysis →
"The public speculator is invariably wrong at extremes."Read Full Analysis →
"In the financial markets, history repeats itself in a never-ending cycle of boom and bust."Read Full Analysis →
"It is absurd to think that the general public can ever make money out of market forecasts."Read Full Analysis →
"Market fluctuations should be viewed as an opportunity to buy low and sell high."Read Full Analysis →
"The investor who permits himself to be stampeded by market declines is perversely transforming his basic advantage into a basic disadvantage."Read Full Analysis →
"In the short run, the market is a voting machine. In the long run, it is a weighing machine."Read Full Analysis →
"Imagine that you own a small share of a private business, and one of your partners, named Mr. Market, is very obliging indeed."Read Full Analysis →
"The essence of investment management is the management of risks, not the management of returns."Read Full Analysis →
"The first rule of investment is don't lose. And the second rule is don't forget the first rule."Read Full Analysis →
"The investor should never have less than 25% or more than 75% of his funds in common stocks."Read Full Analysis →
"Diversification is an established tenet of conservative investment."Read Full Analysis →
"A stock is cheap when it sells at a price below its net current asset value."Read Full Analysis →
"The true investor will do better if he forgets about the stock market."Read Full Analysis →
"It is better to be roughly right than precisely wrong."Read Full Analysis →
"Intrinsic value is that value which is justified by the facts."Read Full Analysis →
"Price is what you pay, value is what you get."Read Full Analysis →
"The margin of safety is always dependent on the price paid."Read Full Analysis →
"Those who do not remember the past are condemned to repeat it."Read Full Analysis →
"The investor's chief problem—and even his worst enemy—is likely to be himself."Read Full Analysis →
"The investor should recognize that the more he succeeds in imitating the professional, the more likely it is that he will get average returns."Read Full Analysis →
"To achieve satisfactory investment results is easier than most people realize."Read Full Analysis →
"The defensive investor will place his chief emphasis on the avoidance of serious mistakes or losses."Read Full Analysis →
"The intelligent investor is a realist who sells to optimists and buys from pessimists."Read Full Analysis →
"The speculator gambles on future developments rather than profits from them."Read Full Analysis →
"An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return."Read Full Analysis →
"In the short run, the market is a voting machine but in the long run, it is a weighing machine."
We have curated 71 verified Benjamin Graham quotes, each with source attribution and in-depth analysis.
Benjamin Graham frequently discusses value investing, risk management, and long-term thinking.