Benjamin Graham is one of the most successful investors in the modern era. He is a British-born American investor, economist, professor and a well-known author.
Benjamin championed the concept of Value Investing through his lectures and books.
His books Security Analysis and The Intelligent Investor are still considered to be the best on the subject of investing.
Benjamin Graham applied his value investment strategy to generate an annualized returns of about 20% from 1936 to 1956, beating the 12.2% average return of the market.
Warren Buffet was so much inspired by Benjamin’s book The Intelligent Investor, that he went on to study under him and later joined his firm to work for him.
Before Graham, money managers behaved much like a medieval guild, guided largely by superstition, guesswork, and arcane rituals. Graham's Security Analysis was the textbook that transformed this musty circle into a modern profession.- Jason Zweig
I would recommend every ambitious investor read Graham’s books and the following quotes are like a trailer.
My Favorite Benjamin Graham Quotes
"While enthusiasm may be necessary for great accomplishments elsewhere, on Wall Street it almost invariably leads to disaster."
Stock markets tend to keep us on edge. Thanks to the live data fed by various apps and websites, we are unconsciously being compelled to buy or sell with very little time to rationalize.
A prudent investor should be driven by goals and planning, rather emotional enthusiasm and knee-jerk reaction.
"On the other hand, investing is a unique kind of casino—one where you cannot lose in the end, so long as you play only by the rules that put the odds squarely in your favour."
“A stock is not just a ticker symbol or an electronic blip; it is an ownership interest in an actual business, with an underlying value that does not depend on its share price
“The longer the bull market lasts the more severely investors will be affected with amnesia; after five years or so, many people no longer believe that bear markets are possible
“Since the profits that companies can earn are finite, the price that investors should be willing to pay for stocks must also be finite
"I quickly convinced myself that the true key to material happiness lay in a modest standard of living which could be achieved with little difficulty under almost all economic conditions”—the margin-of-safety idea applied to personal finance." - Click hereto read a related blog article.
“The intelligent investor is a realist who sells to optimists and buys from pessimists.
“An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.
"People who invest make money for themselves; people who speculate make money for their brokers
Never mingle your speculative and investment operations in the same account, nor in any part of your thinking.”
I hope that the above quotes were inspiring enough, if so feel free to spread the knowledge with your family and social connections.
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