are two elements of basic importance that the analyst should
recognize in the behavior of stocks over the last six years.
The first is the principle of continuity, and the other is
what I would call the principle of deceptive selectivity in
the stock market.
Graham # Important,
Street people learn nothing and forget everything.
Graham # Mistakes,
(stockbrokers, financial analysts, investment advisers) tend
to take the market and themselves too seriously. They spend
a large part of their time trying, valiantly and ineffectively,
to do things they can't do well.
Graham # Stock
- A typical
investor has a great advantage over the large institutions.
Graham # Investing
it is perfectly proper to buy stocks for speculation. There
is no crime in that. When you buy stocks for speculation it
is perfectly proper to take speculative factors into account,
which are different from investment factors.
Graham # Investing,
- I don't
believe any of us have the pretension of believing that by
being very good analysts, or by going through very elaborate
computations, we can be pretty sure of the correctness of
Graham # Belief,
- I am
no longer an advocate of elaborate techniques of security
analysis in order to find superior value opportunities.
Graham # Opportunity,
somebody asserts that a stock has an earning power of so much,
I am sure that the person who hears him doesn't know what
he means, and there is a good chance that the man who uses
it doesn't know what it means.
Graham # Stocks,
- The correct
attitude of the security analyst toward the stock market might
well be that of a man toward his wife. He shouldn't pay too
much attention to what the lady says, but he can't afford
to ignore it entirely. That is pretty much the position that
most of us find ourselves vis-à-vis the stock market.
Graham # Attitude,
- I am
more and more impressed with the possibilities of history's
repeating itself on many different counts. You don't get very
far in Wall Street with the simple, convenient conclusion
that a given level of prices is not too high.
Graham # Stock
- The individual
investor should act consistently as an investor and not as
Graham # Action,
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