Individuals who cannot master their emotions are ill-suited to profit from the investment process.
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.
Interpretation
What this quote means
The quote highlights the complexity and ambiguity in financial terminology, particularly regarding stock earnings.
Benjamin Graham is emphasizing the often misunderstood nature of financial jargon, specifically earnings power in the context of stocks. He suggests that both the person making the assertion and the person receiving it may lack a clear understanding of the term, pointing to the confusion that can arise in financial discussions and the importance of being informed about such concepts.
Themes
StocksEarning PowerFinanceUnderstandingInvesting
In practice
Example use cases
During a finance seminar, you could use this quote to emphasize the need for clarity in financial discussions.
More from Benjamin Graham
All quotes →It 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 – 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
To be an investor you must be a believer in a better tomorrow.
Benjamin GrahamRead
While enthusiasm may be necessary for great accomplishments elsewhere, on Wall Street it almost invariably leads to disaster
Benjamin GrahamRead
Similar quotes
There is always something to worry about. Avoid weekend thinking and ignoring the latest dire predictions of the newscasters. Sell a stock because the company's fundamentals deteriorate, not because the sky is falling.
Peter LynchRead
Outperforming the market with low volatility on a consistent basis is an impossibility. I outperformed the market for 30-odd years, but not with low volatility.
George SorosRead
Short term volatility is greatest at turning points and diminishes as a trend becomes established
George SorosRead
Twenty years in this business convinces me that any normal person using the customary three percent of the brain can pick stocks just as well, if not better, than the average Wall Street expert.
Peter LynchRead
The stock market is a wonderfully efficient mechanism for transferring wealth from the impatient to the patient.
Warren BuffettRead
Banking is a very treacherous business because you don't realize it is risky until it is too late. It is like calm waters that deliver huge storms.
Nassim Nicholas TalebRead