Tuesday, July 17, 2012

Ben Graham on Social Metaphysics

Here is a quote from Ben Graham,

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. He need pay attention to it and act upon it only to the extent that it suits his book and no more. 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. That man would be better off if his stocks had no market quotation at all, for he would then be spared the mental anguish caused by other persons’ mistakes of judgment.

---The Intelligent Investor p. 203

Ignore the market.

Best Regards,
Kevin Graham

1 comment:

  1. What a brilliant quote, Mr. Graham sure knew his stuff, I still find it amazing that even though he is regarded as the father of value investing, most "investors" disregard his methods of seeking out companies, not stocks.

    Great post.