Among the many investors that have been in the world, one of the most prominent is Benjamin Graham, who passed away in 1976. Also known as the father of value investing, This English investor was a teacher of great people like Warren Buffett or Irving Kahn. Without a doubt, Benjamin Graham's quotes are well worth reading, as they contain a lot of financial wisdom.
Apart from the phrases of Benjamin Graham, we will also talk about who he was and what value investing is. All of this is part of the general culture in the financial world, so I advise you to keep reading.
The 15 best phrases of Benjamin Graham
As we have said previously, Benjamin Graham was a prominent investor and called the father of value investing. For this reason, it is worth reading the great phrases that Benjamin Graham left us. Next we will see a list of the fifteen best:
- "People who cannot control their emotions are not apt to make a profit through investing."
- "Anyone who invests in stocks should not be too concerned about erratic fluctuations in security prices, since in the short term the stock market behaves like a voting machine, but in the long term it acts like a scale."
- “You will not be right or wrong because the crowd disagrees with you. You will be right because your data and reasoning are correct. "
- "Mister Market is a schizophrenic in the short term but regains his sanity in the long term."
- “The market is like a pendulum that always swings between unsustainable optimism (which makes assets too expensive) and unwarranted pessimism (which makes assets too cheap). The smart investor is a realistic person, who sells optimists and buys pessimists. "
- "If you want to be rich, learn not only how to earn, but also how to invest."
- "Investors' biggest losses often come from buying low-quality assets in good economic times."
- "It is amazing to see how many tremendously capable entrepreneurs try to operate on Wall Street, ignoring all the principles of common sense by which they have succeeded in their own companies."
- "Most of the time stocks are subject to irrational changes and excessive fluctuations in prices as a consequence of the tendency of most people entrenched in speculating or gambling ... to make way for this you need hope, fear and greed."
- Achieving satisfactory investment results is easier than most people think; achieving superior results is much more difficult than it sounds. "
- "Even the smart investor is likely to need considerable willpower not to follow the crowd."
- "Be careful with projections, it is absurd to think that the general public can make money from market projections."
- "The investor's main problem, and even his worst enemy, is probably himself."
- "The really horrendous losses always come after the buyer forgets to ask how much it cost."
- "There are two rules for investing: The first is don't lose, and the second, never forget the first rule."
Who is Benjamin Graham?
On May 9, 1894, Benjamin Graham was born in London, who today is known as the father of value investing and who died on September 21, 1976. Apart from being an investor, Graham also worked as a professor in the "Columbia Business School" and wrote two finance books: "Security Analysis" and "The Intelligent Investor." Both are considered by many to be the best finance books ever.
At Columbia Business School, Benjamin Graham began teaching a new investment strategy called "value investing." To this day it is still one of the most used and recommended strategies by great economists. Among the disciples of the father of value investing are people as famous as Warren Buffett, Irving Kahn, Walter J. Schloss or Jean Marie Eveillard.
While his teachings on value investing began in 1928, it was not until the publication of his book "Security Analysis" that he defined the term "value investing." This book was written with David Dodd, an American investor. In the book "The Intelligent Investor", Graham already comments on the importance of the margin of safety that investing in value offers.
Besides being known as the father of value investing, Benjamin Graham is also recognized as father of stock activism. The influence he had on his students was such that two of them named their children after him. Warren Buffett named his son Howard Graham Buffett and Irving Kahn named his son Thomas Graham Kahn. In fact, Buffett has acknowledged on several occasions that Benjamin Graham was the person who had come to influence him the most, after his father.
value investing
Also known as value investing, value investing is an investment philosophy whose operation it is based on the acquisition of securities at a low price. If we subtract the market price from the intrinsic value of the purchased stock, it results in a margin of safety that in principle should always be given when we invest in value.
Generally, value investors, like Benjamin Graham, think that the market price increases in the future when it is below the fundamental value of the stock. It is something that usually happens when the market adjusts. However, value investing It has two big problems. We must correctly estimate what the intrinsic value would be and predict as far as possible when this value will be reflected in the market.
There are many investors who have become famous and rich through different techniques. Each one has their experiences, their methods and their own advice. With the phrases of Benjamin Graham I hope I have helped and motivated you to invest in the stock market.