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.
Successful investing is about managing risk, not avoiding it.
Investing isn't about beating others at their game. It's about controlling yourself at your own game.
To be an investor you must be a believer in a better tomorrow.
The intelligent investor is a realist who sells to optimists and buys from pessimists.
Thousands of people have tried, and the evidence is clear: The more you trade, the less you keep.
The intelligent investor is likely to need considerable will power to keep from following the crowd.
In the short run, the market is a voting machine, but in the long run it is a weighing machine.
Buy not on optimism, but on arithmetic.
Losing some money is an inevitable part of investing, and there's nothing you can do to prevent it. But to be an intelligent investor, you must take responsibility for ensuring that you never lose most or all of your money.
The essence of investment management is the management of risks, not the management of returns.
An intelligent investor gets satisfaction from the thought that his operations are exactly opposite to those of the crowd.
Before you invest, you must ensure that you have realistically assessed your probability of being right and how you will react to the consequences of being wrong.
A great company is not a great investment if you pay too much for the stock.
The intelligent investor should recognize that market panics can create great prices for good companies and good prices for great companies.
Individuals who cannot master their emotions are ill-suited to profit from the investment process.
The value of any investment is, and always must be, a function of the price you pay for it.
In the old legend the wise men finally boiled down the history of mortal affairs into a single phrase: 'This too will pass.'
It should be remembered that a decline of 50% fully offsets a preceding advance of 100%.
Wall Street people learn nothing and forget everything.
Buy when most people, including experts, are pessimistic, and sell when they are actively optimistic.
If you are shopping for common stocks, choose them the way you would buy groceries, not the way you would buy perfume.
The true investor... will do better if he forgets about the stock market and pays attention to his dividend returns and to the operation results of his companies.
Though business conditions may change, corporations and securities may change, and financial institutions and regulations may change, human nature remains the same. Thus the important and difficult part of sound investment, which hinges upon the investor's own temperament and attitude, is not much affected by the passing years.
The most realistic distinction between the investor and the speculator is found in their attitude toward stock-market movements. The speculator's primary interest lies in anticipating and profiting from market fluctuations. The investor's primary interest lies in acquiring and holding suitable securities at suitable prices. Market movements are important to him in a practical sense, because they alternately create low price levels at which he would be wise to buy and high price levels at which he certainly should refrain from buying and probably would be wise to sell.
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