GrahamValue

"You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right."
— Benjamin Graham, Chapter 20: “Margin of Safety” as the Central Concept of Investment, The Intelligent Investor.

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21 hours ago | [YT] | 5

GrahamValue

When you're investing several years of savings, or an inheritance, your first priority has to be safety of the Principal. Investors who work with larger sums of money almost always use the Benjamin Graham framework because it emphasizes the Margin of Safety, while also ensuring an adequate return.

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1 day ago | [YT] | 6

GrahamValue

“It was an application of the governing maxim of the Rothschilds: “Buy cheap and sell dear.”* And it had the advantage of running directly counter to the ingrained and pernicious maxim of Wall Street that stocks should be bought because they have gone up and sold because they have gone down.”
— Benjamin Graham, Chapter 1: Investment versus Speculation, The Intelligent Investor.

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2 days ago | [YT] | 5

GrahamValue

"Portfolio concentration may well decrease risk if it raises, as it should, both the intensity with which an investor thinks about a business and the comfort-level he must feel with its economic characteristics before buying into it."

"If you are a know-something investor, able to understand business economics and to find five to ten sensibly-priced companies that possess important long-term competitive advantages, conventional diversification makes no sense for you. It is apt simply to hurt your results and increase your risk."
— Warren Buffett, Berkshire Hathaway: Letter to Shareholders (1993).

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3 days ago | [YT] | 6

GrahamValue

Pick your favorite version of the quote (one more posted yesterday).

"So you, as an investor, you love volatility. Not if you’re on margin, but if you’re an investor you aren’t on margin. And if you’re an investor, you love the idea of wild swings because it means more things are going to get mispriced."

— Warren Buffett, Berkshire Hathaway: Annual Shareholders Meeting (1997).

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3 days ago | [YT] | 3

GrahamValue

"You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right."
— Benjamin Graham, Chapter 20: “Margin of Safety” as the Central Concept of Investment, The Intelligent Investor.

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4 days ago | [YT] | 6

GrahamValue

"Lethargy bordering on sloth remains the cornerstone of our investment style."
— Warren Buffett, Berkshire Hathaway: Letter to Shareholders (1990).

"Inactivity strikes us as intelligent behavior."

— Warren Buffett, Berkshire Hathaway: Letter to Shareholders (1996).

"In the world of securities, courage becomes the supreme virtue after adequate knowledge and a tested judgment are at hand."

— Benjamin Graham, Chapter 7: Portfolio Policy for the Enterprising Investor: The Positive Side, The Intelligent Investor.

"Portfolio concentration may well decrease risk if it raises, as it should, both the intensity with which an investor thinks about a business and the comfort-level he must feel with its economic characteristics before buying into it."

"If you are a know-something investor, able to understand business economics and to find five to ten sensibly-priced companies that possess important long-term competitive advantages, conventional diversification makes no sense for you. It is apt simply to hurt your results and increase your risk."

— Warren Buffett, Berkshire Hathaway: Letter to Shareholders (1993).

"As the saying goes, a stock well bought is half sold. I think Ben was an expert in that area."

— Walter J. Schloss, Benjamin Graham and Security Analysis: A Reminiscence (1976) [PDF].

"Always remember: Profits are made in the buying, not in the selling."

— Robert T. Kiyosaki, Chapter Nine: Here Are Some To Do’s, Rich Dad Poor Dad (1997).

"When Phaëthon insisted on driving the chariot of the Sun, his father, the experienced operator, gave the neophyte some advice which the latter failed to follow—to his cost. Ovid summed up Phoebus Apollo’s counsel in three words:

Medius tutissimus ibis
You will go safest in the middle course
I think this principle holds good for investors and their security analyst advisers."
— Benjamin Graham, Appendix 4: The New Speculation in Common Stocks, The Intelligent Investor.

"Buy wisely when prices fall sharply and to sell wisely when they advance a great deal. At other times he will do better if he forgets about the stock market and pays attention to his dividend returns and to the operating results of his companies."

— Benjamin Graham, Chapter 8: The Investor and Market Fluctuations, The Intelligent Investor.

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5 days ago | [YT] | 7

GrahamValue

As Ben said: "In the short run, the market is a voting machine but in the long run it is a weighing machine".
— Warren Buffett, Berkshire Hathaway: Letter to Shareholders (1987).

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6 days ago | [YT] | 8

GrahamValue

Benjamin Graham Formula

V = EPS x (8.5 + 2g), or
Value = Current (Normal) Earnings x (8.5 plus twice the expected annual growth rate)

This now-popular formula was originally intended as a warning of what NOT to do!

1 week ago | [YT] | 6

GrahamValue

Benjamin Graham and the Margin of Safety.

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