Money and Finance
I've started reading Benjamin Graham's book The Intelligent Investor and have been amazed by some of the insights that he had.
On page 203 Graham writes "The true investor scarcely ever is forced to sell his shares, and at all other times he is free to disregard the current price quotation. ... Thus the investor who permits himself to be stampeded or unduly worried by unjustified market declines in his holdings is perversely transforming his basic advantage into a basic disadvantage."
What Graham is saying here is that you are rarely forced by means outside of your control to sell your shares and that you shouldn't get caught up in the crazy swings of the market. Don't see a massive bleeding on the stock market and take that as a sign that you should sell out your positions. As long as there have been no fundamental changes with the underlying companies then sit back knowing that you are getting more shares from your dividend reinvestment and you should consider adding to your position. The market is one crazy s.o.b. and you should ignore the short term price fluctuations.
I highly recommend reading through The Intelligent Investor if you haven't done so already.
- Benjamin Graham: Figuring It Out (book Review)
BEFORE Benjamin Graham started to work on Wall Street, investment analysis was a hit-and-miss affair, focusing more on recent price movements than on the merits of individual companies. Graham, a brilliant mathematician, took the process to a much higher...
- If You Think Worst Is Over, Take Benjamin Graham's Advice - By Jason Zweig
It is sometimes said that to be an intelligent investor, you must be unemotional. That isn't true; instead, you should be inversely emotional. Even after recent turbulence, the Dow Jones Industrial Average is up roughly 30% since its low in March....
- The Intelligent Investor
It's time for another installment in my The Intelligent Investor series. On page 348, Graham covers his seven statistical requirements for inclusion in the defensive investors portfolio. His seven criteria are: 1. Adequate Size of the Enterprise...
- The Intelligent Investor
It's time for another installment in my The Intelligent Investor series. On page 294, Graham writes "One of the most persuasive tests of high quality is an uninterrupted record of dividend payments going back over many years. We think that a...
- The Intelligent Investor
I've started reading Benjamin Graham's book "The Intelligent Investor" and have been amazed by some of the insights that he had. I'll be starting a new series referencing Mr. Graham and help to share and reinforce his knowledge to everyone...
Money and Finance
The Intelligent Investor
I've started reading Benjamin Graham's book The Intelligent Investor and have been amazed by some of the insights that he had.
On page 203 Graham writes "The true investor scarcely ever is forced to sell his shares, and at all other times he is free to disregard the current price quotation. ... Thus the investor who permits himself to be stampeded or unduly worried by unjustified market declines in his holdings is perversely transforming his basic advantage into a basic disadvantage."
What Graham is saying here is that you are rarely forced by means outside of your control to sell your shares and that you shouldn't get caught up in the crazy swings of the market. Don't see a massive bleeding on the stock market and take that as a sign that you should sell out your positions. As long as there have been no fundamental changes with the underlying companies then sit back knowing that you are getting more shares from your dividend reinvestment and you should consider adding to your position. The market is one crazy s.o.b. and you should ignore the short term price fluctuations.
I highly recommend reading through The Intelligent Investor if you haven't done so already.
- Benjamin Graham: Figuring It Out (book Review)
BEFORE Benjamin Graham started to work on Wall Street, investment analysis was a hit-and-miss affair, focusing more on recent price movements than on the merits of individual companies. Graham, a brilliant mathematician, took the process to a much higher...
- If You Think Worst Is Over, Take Benjamin Graham's Advice - By Jason Zweig
It is sometimes said that to be an intelligent investor, you must be unemotional. That isn't true; instead, you should be inversely emotional. Even after recent turbulence, the Dow Jones Industrial Average is up roughly 30% since its low in March....
- The Intelligent Investor
It's time for another installment in my The Intelligent Investor series. On page 348, Graham covers his seven statistical requirements for inclusion in the defensive investors portfolio. His seven criteria are: 1. Adequate Size of the Enterprise...
- The Intelligent Investor
It's time for another installment in my The Intelligent Investor series. On page 294, Graham writes "One of the most persuasive tests of high quality is an uninterrupted record of dividend payments going back over many years. We think that a...
- The Intelligent Investor
I've started reading Benjamin Graham's book "The Intelligent Investor" and have been amazed by some of the insights that he had. I'll be starting a new series referencing Mr. Graham and help to share and reinforce his knowledge to everyone...