"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."
"we have complaints that institutional dominance of the stock market has put 'the small investor at a disadvantage because he can't compete with the trust companies' huge resources, etc. The facts are quite the opposite. It may be that the institutions are better equipped than the individual to speculate in the market.But I am convinced that an individual investor with sound principles, and soundly advised, can do distinctly better over the long pull than large institutions."
41 likes
Source: Benjamin Graham (1965). “The Intelligent Investor: A Book of Practical Counsel”, p.212, 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 short run, the market is a voting machine, but in the long run it is a weighing machine."
"In the world of securities, courage becomes the supreme virtue after adequate knowledge and a tested judgment are at hand."