Individuals who cannot master their emotions are ill-suited to profit from the investment process.
Benjamin GrahamRead
While enthusiasm may be necessary for great accomplishments elsewhere, on Wall Street it almost invariably leads to disaster
Interpretation
What this quote means
Enthusiasm in finance can often result in poor decision-making and losses.
The quote by Benjamin Graham suggests that while enthusiasm is generally a vital trait for achieving significant goals in various areas of life, it can be detrimental on Wall Street, leading investors to make impulsive decisions that culminate in financial losses. This highlights the importance of rationality and caution in high-stakes environments, especially where money is involved, indicating that a measured approach is preferable to one driven by passion alone.
Themes
EnthusiasmFinanceInvestingWall StreetDisaster
In practice
Example use cases
A financial advisor might use this quote to advise clients against making hasty investment decisions.
More from Benjamin Graham
All quotes βIt is absurd to think that the general public can ever make money out of market forecasts.
Benjamin GrahamRead
Have the courage of your knowledge and experience. If you have formed a conclusion from the facts and if you know your judgment is sound, act on it β even though others may hesitate or differ.
Benjamin GrahamRead
Obvious prospects for physical growth in a business do not translate into obvious profits for investors.
Benjamin GrahamRead
When 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.
Benjamin GrahamRead
To be an investor you must be a believer in a better tomorrow.
Benjamin GrahamRead
Similar quotes
If you owe $50, you're a delinquent account. If you owe $50,000, you're a small businessmen. If you owe $50 million, you're a corporation. If you owe $50 billion, you're the government.
Lynn Townsend White, Jr.Read
Our stay-put behavior reflects our view that the stock market serves as a relocation center at which money is moved from the active to the patient.
Warren BuffettRead
Short term volatility is greatest at turning points and diminishes as a trend becomes established
George SorosRead
When interest rates are low we have conditions for asset bubbles to develop, and they are developing at the moment. The ultimate asset bubble is gold.
George SorosRead
When your outgo exceeds your income, the upshot may be your downfall.
Paul HarveyRead
The securitisation of mortgages added a new dimension of systemic risk. Financial engineers claimed they were reducing risks through geographic diversification: in fact they were increasing them by creating an agency problem. The agents were more interested in maximising fee income than in protecting the interests of bondholders. That is the verity that was ignored by regulators and market participants alike.
George SorosRead