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Quote by Benjamin Graham

“It's nonsensical to derive a price/earnings ratio by dividing the known current price by unknown future earnings.”

Quote by Benjamin Graham

Author

Benjamin Graham

Benjamin Graham, born on May 9, 1894, in London, England, was a renowned investor and securities analyst. He had a profound impact on the investment field and was hailed as the 'Father of Modern Investing'. Graham's investment philosophy emphasizes value investing, advocating for investors to focus on the fundamental aspects of companies rather than market sentiment. His book, 'The Intelligent Investor', has had a significant influence on generations of investors. more

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“Calculate a stock's price/earnings ratio yourself, using Graham's formula of current price divided by average earnings over the past three years.”

Years Past Three Investing Average Currents Divided Formulas Three Years Earning Over The Past Ratios

Book:The Intelligent Investor: A Book of Practical Counsel

Source: The Intelligent Investor: A Book of Practical Counsel

“Avoid second-quality issues in making up a portfolio unless they are demonstrable bargains.”

Quality Issues Investing Bargains Making Up Portfolios

Book:The Intelligent Investor: A Book of Practical Counsel

Source: The Intelligent Investor: A Book of Practical Counsel

“To see how much a company is truly earning on the capital it deploys in its businesses, look beyond EPS to Return on Invested Capital (ROIC).”

Looks Company Return Investing Earning

Book:The Intelligent Investor: A Book of Practical Counsel

Source: The Intelligent Investor: A Book of Practical Counsel

“Although there are good and bad companies, there is no such thing as a good stock; there are only good stock prices, which come and go.”

Company Investing Good And Bad Comes And Goes Bad Company Stock Price

Author:Benjamin Graham

“The intelligent investor should recognize that market panics can create great prices for good companies and good prices for great companies.”

Should Company Intelligent Investing Investors Panic Good Company Great Company

Book:The Intelligent Investor: A Book of Practical Counsel

Source: The Intelligent Investor: A Book of Practical Counsel

“The margin of safety is always dependent on the price paid. It will be large at one price, small at some higher price, nonexistent at some still higher price.”

Stills Higher Paid Safety Investing Dependent Margins Miscalculations

Book:The Intelligent Investor: A Book of Practical Counsel

Source: The Intelligent Investor: A Book of Practical Counsel

“There is a close logical connection between the concept of a safety margin and the principle of diversification.”

Principles Concepts Connections Safety Investing Logical Margins Diversification

Author:Benjamin Graham

“Diversification is an established tenet of conservative investment.”

Investment Investing Conservative Diversification

Author:Benjamin Graham

“It is our argument that a sufficiently low price can turn a security of mediocre quality into a sound investment opportunity - provided that the buyer is informed and experienced and he practices adequate diversification. For, if the price is low enough to create a substantial margin of safety, the security thereby meets our criterion of investment.”

Ifs Enough Turns Opportunity Sound Quality Practice Security Lows Argument Safety Investment Investing Mediocre Adequate Criteria Margins Buyers Diversification

Author:Benjamin Graham

“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.”

Can Do Loses Responsibility Losing Intelligent Investing Inevitable Investors Taking Responsibility

Book:The Intelligent Investor: A Book of Practical Counsel

Source: The Intelligent Investor: A Book of Practical Counsel