Mentor of Warren Buffet
And author of one of the greatest investing books of all time
15 quotes from Benjamin Graham and what we can learn from each one:
And author of one of the greatest investing books of all time
15 quotes from Benjamin Graham and what we can learn from each one:
Benjamin Graham was not only an incredibly successful investor himself
He also mentored arguably the most famous name in the investing world, Warren Buffet
As well as authoring one of the best selling books on investing of all time, The Intelligent Investor
Take note...
He also mentored arguably the most famous name in the investing world, Warren Buffet
As well as authoring one of the best selling books on investing of all time, The Intelligent Investor
Take note...
1. "Investing isn't about beating others at their game. It's about controlling yourself at your own game"
So often, your success in the stock market comes down to controlling your own emotions and impulses. These often lead to more bad than good.
One must remain pragmatic
So often, your success in the stock market comes down to controlling your own emotions and impulses. These often lead to more bad than good.
One must remain pragmatic
2. "Successful investing is about managing risk, not avoiding it"
Risk is inherent in any investment. Learning to tolerate and manage risk is how you get ahead. As with anything, the higher the risk, the higher both the potential upside and downside.
Risk is inherent in any investment. Learning to tolerate and manage risk is how you get ahead. As with anything, the higher the risk, the higher both the potential upside and downside.
3. "The market is a pendulum that forever swings between unsustainable optimism (which makes stocks too expensive) and unjustified pessimism (which makes them too cheap). The intelligent investor is a realist who sells to optimists and buys from pessimists"
This says it all...
This says it all...
But what we're seeing in the markets right now is the latter. Many stocks are becoming extremely cheap, despite delivering strong results.
If you're intelligent, you're buying all the stocks that weak hands are currently selling.
If you're intelligent, you're buying all the stocks that weak hands are currently selling.
4. "A great company is not a great investment if you pay too much for the stock"
This is so obvious when you say it out loud. But often, new investors and even some experienced ones get drawn to the hype of some stocks and the associated FOMO. Avoid this.
This is so obvious when you say it out loud. But often, new investors and even some experienced ones get drawn to the hype of some stocks and the associated FOMO. Avoid this.
5. "To be an investor you must be a believer in a better tomorrow"
As an investor, you must be an optimist in order to find the potential in newer businesses. However, there is a fine line between being optimistic and being delusional.
As an investor, you must be an optimist in order to find the potential in newer businesses. However, there is a fine line between being optimistic and being delusional.
6. "Thousands of people have tried, and the evidence is clear: The more you trade, the less you keep"
It was true then, and it's still true now.
The vast majority of traders lose money. Those who invest in strong businesses with a long-term time horizon will always win.
It was true then, and it's still true now.
The vast majority of traders lose money. Those who invest in strong businesses with a long-term time horizon will always win.
7. " An intelligent investor gets satisfaction from the thought that his operations are exactly opposite to those of the crowd"
IYKYK.
If you're not only buying when others are selling
But buying based on solid research into business fundamentals
You're on to a winner
IYKYK.
If you're not only buying when others are selling
But buying based on solid research into business fundamentals
You're on to a winner
8. "In the short run, the market is a voting machine, but in the long run it is a weighing machine"
I particularly like this one - popularity undoubtedly plays its part in short-term price movements.
But ultimately, it always comes down to earnings.
I particularly like this one - popularity undoubtedly plays its part in short-term price movements.
But ultimately, it always comes down to earnings.
9. "Always buy your straw hats in the Winter"
Buy your favorite businesses when they're beaten down and out of favor. This is where you make the greatest return on your investment
Buy your favorite businesses when they're beaten down and out of favor. This is where you make the greatest return on your investment
10. "The intelligent investor should recognize that market panics can create great prices for good companies and good prices for great companies"
Particularly apt right now
Don't just buy any dip
Buy the dip in businesses who are executing well but have been dragged down
Particularly apt right now
Don't just buy any dip
Buy the dip in businesses who are executing well but have been dragged down
11. "It should be remembered that a decline of 50% fully offsets a preceding advance of 100%"
You might need to read that twice
Know when to cut losses vs lowering your average
You might need to read that twice
Know when to cut losses vs lowering your average
12. "It is absurd to think that the general public can ever make money out of market forecasts"
Market forecasts are more often wrong than right, so stop paying any attention to them and stick to investing in businesses with strong fundamentals
Market forecasts are more often wrong than right, so stop paying any attention to them and stick to investing in businesses with strong fundamentals
13. "Investing is most intelligent when it is most businesslike"
I said it before - don't get attached.
You're either in the business of making money, or you're not.
I said it before - don't get attached.
You're either in the business of making money, or you're not.
14. "The genuine investor in common stocks does not need a great equipment of brain and knowledge, but he does need some unusual qualities of character"
It's more about personality than education. Study the greats and identify the similarities
It's more about personality than education. Study the greats and identify the similarities
15. "Never buy a stock because it has gone up or sell one because it has gone down"
This is the ultimate rookie error. Jumping into stocks and jumping out again because they stopped going up, or went down is a guaranteed method to lose all your money.
This is the ultimate rookie error. Jumping into stocks and jumping out again because they stopped going up, or went down is a guaranteed method to lose all your money.
I've studied the traits of the most successful investors of the last century, implementing the learnings into the successful investment strategy I teach in @SavvyInvesting_
If you enjoyed this thread, please:
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If you enjoyed this thread, please:
- Retweet the original tweet
- Follow @FiSavvy for more
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