"Most of the time common stocks are subject to irrational and excessive price fluctuations in both directions as the consequence of the ingrained tendency of most people to speculate or gamble... to give way to hope, fear and greed."
"In the short run, the market is a voting machine, but in the long run it is a weighing machine."
58 likes
Source: Benjamin Graham (1965). “The Intelligent Investor: A Book of Practical Counsel”, p.179, Prabhat Prakashan
About the author
Same author
More quotes by Benjamin Graham
"Investing isn't about beating others at their game. It's about controlling yourself at your own game."
"Successful investing is about managing risk, not avoiding it."
"The intelligent investor is a realist who sells to optimists and buys from pessimists."
"In the world of securities, courage becomes the supreme virtue after adequate knowledge and a tested judgment are at hand."
"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."