Individuals who cannot master their emotions are ill-suited to profit from the investment process.
Benjamin GrahamRead
To be an investor you must be a believer in a better tomorrow.
Interpretation
Investors need to have faith in future growth and improvements.
This quote by Benjamin Graham emphasizes that successful investing is not just about numbers and analysis; it also requires a fundamental belief in the possibility of progress and the improvement of circumstances. An investor must trust that despite current hardships or uncertainties, a better future is achievable, which motivates them to take calculated risks in the present.
In practice
This quote is perfect for a motivational speech about investing at a financial seminar.
Individuals who cannot master their emotions are ill-suited to profit from the investment process.
It is absurd to think that the general public can ever make money out of market forecasts.
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.
Obvious prospects for physical growth in a business do not translate into obvious profits for investors.
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.
While enthusiasm may be necessary for great accomplishments elsewhere, on Wall Street it almost invariably leads to disaster
Time is on your side when you own shares of superior companies.
It seems to me - particularly for these retirement-plan investors, the vast majority of whom are not particularly financially sophisticated - by far the best way is to invest in index funds.
Investors making purchases in an overheated market need to recognize that it may often take an extended period for the value of even an outstanding company to catch up with the price they paid.
When it comes to portfolios, my personal advice is for anyone who can, put money into forestry or farmland. Long term, you would probably never come near their returns in the stock market. In the world that I see, land is golden.
Just because you buy a stock and it goes up does not mean you are right. Just because you buy a stock and it goes down does not mean you are wrong.
When an investor focuses on short-term investments, he or she is observing the variability of the portfolio, not the returns - in short, being fooled by randomness.
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