Benjamin Graham
Benjamin Graham📌 Investment Psychology

Benjamin Graham's Investment Psychology Rules

Benjamin Graham (May 9, 1894 – September 21, 1976) was a British-born American economist, professor, and investor, widely known as the "father of value investing." His work laid the foundation for modern security analysis and investment philosophy. Graham taught at Columbia Business School for nearly three decades, where his students included Warren Buffett, who later called him the second most...

3 principles·Investment Psychology

3 Key Investment Psychology Principles

#1

Emotions Are the Enemy

"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."

Emotional control is essential for investment success.

🌱 Beginner★★★★★
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#2

Think Independently

"You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right."

Base decisions on facts, not crowd opinion.

🌿 Intermediate★★★★★
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#3

Investment Requires Discipline

"The investor's chief problem—and even his worst enemy—is likely to be himself."

Your own emotional impulses and cognitive biases are a far greater threat than any external market risk.

🌿 Intermediate★★★★★
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Frequently Asked Questions

What are Benjamin Graham's key investment psychology principles?

Benjamin Graham has 3 key principles on investment psychology. The most important one is "Emotions Are the Enemy" — Individuals who cannot master their emotions are ill-suited to profit from the investment process.

How does Benjamin Graham apply investment psychology in practice?

Benjamin Graham applies investment psychology through several key principles including "Emotions Are the Enemy" and "Think Independently". These principles guide practical investment decisions and have been tested across decades of market cycles.

What makes Benjamin Graham's approach to investment psychology unique?

Benjamin Graham's approach to investment psychology is distinguished by a focus on long-term thinking and fundamental analysis. With 3 specific principles in this area, Benjamin Graham provides a comprehensive framework that investors at any level can study and apply to improve their decision-making.

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