"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."
"Real investment risk is measured not by the percent that a stock may decline in price in relation to the general market in a given period, but by the danger of a loss of quality and earnings power through economic changes or deterioration in management."
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Source: Benjamin Graham, Institute of Chartered Financial Analysts, Financial Analysts Research Foundation (1974). “The Renaissance of value: the proceedings of a seminar on the economy, interest rates, portfolio management, and bonds vs common stocks, September 18, 1974”
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