Individuals who cannot master their emotions are ill-suited to profit from the investment process.
Benjamin GrahamRead
A stock is not just a ticker symbol or an electronic blip; it is an ownership interest in an actual business, with an underlying value that does not depend on its share price.
Interpretation
What this quote means
Stocks represent ownership in a business, not just numbers on a screen.
This quote by Benjamin Graham emphasizes that stocks are more than just their market prices; they signify ownership stakes in real businesses with inherent values. It serves as a reminder to investors that the true worth of a stock is based on the company's fundamentals and potential, rather than the often volatile fluctuations seen in the market.
Themes
StocksInvestingBusinessValueOwnership
In practice
Example use cases
During a financial seminar, to explain the importance of understanding stock investing.
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.
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Obvious prospects for physical growth in a business do not translate into obvious profits for investors.
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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.
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To be an investor you must be a believer in a better tomorrow.
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