Benjamin Graham Quotes

You're looking for a mispriced gamble. That's what investing is. And you have to know enough to know whether the gamble is mispriced. That's value investing.

Fundamental analysis seeks to establish how underlying values are reflected in stock prices, whereas the theory of reflexivity shows how stock prices can influence underlying values

The critical investment factor is determining the intrinsic value of a business and paying a fair or bargain price.

I mean, you can explain the fact that these are depressed prices, you know. We think these assets are going to be worth a lot more. And I think that case can be made in certain situations. But I think to just say, you know, we're going to say a dollar of cash is worth $2 all of a sudden, it isn't worth $2. It's worth a dollar today.

The margin of safety is always dependent on the price paid. It will be large at one price, small at some higher price, nonexistent at some still higher price.

All intelligent investing is value investing - acquiring more that you are paying for. You must value the business in order to value the stock.

I put heavy weight on certainty. It's not risky to buy securities at a fraction of what they're worth.

The ideal form of common stock analysis leads to a valuation of the issue which can be compared with the current price to determine whether or not the security is an attractive purchase.

An investor calculates what a stock is worth, based on the value of its businesses.

Market value is irrelevant to intrinsic value. ... Unqualified judgment can at most claim to decide the market-value - a value that can be in inverse proportion to the intrinsic value.

I'd rather buy something that is relatively depressed than something that is relatively high.

Though it is very easy to do valuations, eyeballs and brand prominence surveys, you should never allow any of them to influence the balance sheet.

A great business at a fair price is superior to a fair business at a great price.

In other words, the percentage change in book value in any given year is likely to be reasonably close to that year's change in intrinsic value.

The only intelligence investing is value investing...to acquire more than one is paying for.

All sensible investing is value investing

I judge property myself by its net earning power; that is the only rule I have been able to get.... This whole island [Manhattan] was once bought for a few strings of beads. But now you will find this property valued by its earning power, by its rent power, and that is the way to value a railroad or telegraph.

Long ago, Ben Graham taught me that "Price is what you pay; value is what you get." Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down.

You must value the business in order to value the stock.

Intrinsic value can be defined simply: It is the discounted value of the cash that can be taken out of a business during its remaining life.

Berkshire was built on the eternal verities: basic mathematics, basic horse sense, basic fear, and basic diagnosis of human nature to make predictions regarding human behavior. We stuck to the basics with a certain amount of discipline and it has worked out quite well.

The investment game always involves considering both quality and price, and the trick is to get more quality than you pay for in price. It's just that simple.

Even defensive portfolios should be changed from time to time, especially if the securities purchased have an apparently excessive advance and can be replaced by issues much more reasonable priced.

If you are shopping for common stocks, choose them the way you would buy groceries, not the way you would buy perfume.

There is only one way to go: up. I like to find cheap assets with problems. It gives me power.