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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 Graham
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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.

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