(British-born American investor, economist, and professor) May 9, 1894 – September 21, 1976
Successful investing is about managing risk, not avoiding it.
In the short run, the market is a voting machine but in the long run, it is a weighing machine.
Good management produce a good average market price, and bad management produce bad market prices.
Buy cheap and sell dear.
The stock investor is neither right nor wrong because others agreed or disagreed with him; he is right because his facts and analysis are right.
The intelligent investor is a realist who sells to optimists and buys from pessimists.
You must never delude yourself into thinking that you’re investing when you’re speculating.
The essence of investment management is the management of risks, not the management of returns.
Buy when most people, including experts, are pessimistic, and sell when they are actively optimistic.
People who invest make money for themselves; people who speculate make money for their brokers.
Those who do not remember the past are condemned to repeat it.
The true investor will do better if he forgets about the stock market and pays attention to his dividend returns and to the operation results of his companies.
Investment is most intelligent when it is most businesslike.
Before you invest, you must ensure that you have realistically assessed your probability of being right and how you will react to the consequences of being wrong.
Individuals who cannot master their emotions are ill-suited to profit from the investment process.
Buy not on optimism, but on arithmetic.
Successful investing professionals are disciplined and consistent and they think a great deal about what they do and how they do it.
An intelligent investor gets satisfaction from the thought that his operations are exactly opposite to those of the crowd.
But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.
In the world of securities, courage becomes the supreme virtue after adequate knowledge and a tested judgment are at hand.
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.
Be fearful when others are greedy and greedy when others are fearful.
After all, the whole point of investing is not to earn more money than average, but to earn enough money to meet your own needs.
The best values today are often found in the stocks that were once hot and have since gone cold.
By developing your discipline and courage, you can refuse to let other people’s mood swings govern your financial destiny. In the end, how your investments behave is much less important than how you behave.
Never mingle your speculative and investment operations in the same account nor in any part of your thinking.
The genuine investor in common stocks does not need a great equipment of brain and knowledge, but he does need some unusual qualities of character.
On the other hand, investing is a unique kind of casino—one where you cannot lose in the end, so long as you play only by the rules that put the odds squarely in your favor.
Americans are getting stronger. Twenty years ago, it took two people to carry ten dollars’ worth of groceries. Today, a five-year-old can do it.
The volume of credit depends upon three factors: the desire to borrow, the ability to lend and the desire to lend.
While enthusiasm may be necessary for great accomplishments elsewhere, on Wall Street it almost invariably leads to disaster.
All things excellent are as difficult as they are rare.
The investment world nevertheless has enough liars, cheaters, and thieves to keep Satan’s check-in clerks frantically busy for decades to come.
It requires strength of character in order to think and to act in opposite fashion from the crowd and also patience to wait for opportunities that may be spaced years apart.
You will be much more in control, if you realize how much you are not in control.
Before you place your financial future in the hands of an adviser, it’s imperative that you find someone who not only makes you comfortable but whose honesty is beyond reproach.
An investment operation is one that can be justified on both qualitative and quantitative grounds.
If the reason people invest is to make money, then in seeking advice they are asking others to tell them how to make money. That idea has some element of naïveté.
If you are shopping for common stocks, choose them the way you would buy groceries, not the way you would buy perfume.
While a trend shown in the past is a fact, a “future trend” is only an assumption.
Plant trees that other men will sit under.
Obvious prospects for physical growth in a business do not translate into obvious profits for investors.
Abnormally good or abnormally bad conditions do not last forever.
Astute observers of corporate balance sheets are often the first to see business deterioration.
Without a saving faith in the future, no one would ever invest at all. To be an investor, you must be a believer in a better tomorrow.
We must recognize, however, that intrinsic value is an elusive concept.
Since the profits that companies can earn are finite, the price that investors should be willing to pay for stocks must also be finite.
The work of a financial analyst falls somewhere in the middle between that of a mathematician and of an orator.
Investment must always consider the price as well as the quality of the security.
Principle for the securities analyst: Nearly every issue might conceivably be cheap in one price range and dear in another.