“The underlying principles of sound investment should not alter from decade to decade, but the application of these principles must be adapted to significant changes in the financial mechanisms and climate.” – Benjamin Graham
Man, there has never been more truth said that can be applied to our current market situation. It is amazing to think that that quote comes from Graham’s book, “The Intelligent Investor“, that was originally published in 1949. The underlying fundamentals of investing and the factors that drive the price of stock do not change from year to year or decade to decade. But, our human emotion and cataclysmic events in the markets force us all off course in one way or another from expected behavior.
“The investor’s chief problem and even his worst enemy is likely to be himself.” – Benjamin Graham
That statement above is so true. Our ultimate goal as investors is to buy an investment at low price and then sell it at a higher price. Buy low and sell high. The one thing that always keeps us from accomplishing that mission is ourselves. We are our own worst enemy in most cases, and Benjamin Graham hit the nail on the head with his quote. Markets would behave efficiently if we did not get in their way.
Who Is Benjamin Graham? Ben Graham is universally recognized as the father of two fundamental investment disciplines, security analysis and value investing. His two seminal books, “Security Analysis” and “The Intelligent Investor” are considered by many investment professionals to be the best books ever written for stock investors. Both of these books have never been out of print and are still used as texts for college courses on investing.
In his investment classic, “The Money Masters of Our Time“, John Train said, “Benjamin Graham ranks as this century’s most important thinker on applied portfolio investment, taking it from an art, based on impressions, inside information, flair, to a proto-science, an orderly discipline.”
Do you have your own favorite investing quote? I’d love to hear it. Please add it to the comment section below.
Note – This is a series of posts on Wednesdays with quotes on investing from famous people investors and people in finance.