The investor cannot enter the arena of the stock market with any real hope of success unless he is armed with mental weapons that distinguish him in kind from the trading public.
The Intelligent InvestorOne possible weapon is indifference to market fluctuations. He must be relatively immune to optimism and pessimism and impervious to business or stock-market forecasts. In a word, he must by psychologically prepared to be a true investor and not a speculator masquerading as an investor. If he can meet this test, he will be a member not of the public at large but of specialized and self-disciplined group.
The Intelligent InvestorIf the investor is bargain-minded he might as well be on the lookout continuously for individual bargains, instead of seeking to operate in leading stocks.
The Intelligent InvestorTheir most familiar argument is that a stock should be bought because it has advanced and should be sold because it has declined. If true investment has one fundamental principle, it is likely to be the opposite of that one.
The Intelligent InvestorBy pricing we mean the endeavor to buy stocks when they are quoted below their fair value and to sell them when they rise above such value.
The Intelligent InvestorThere is a great advantage for the young capitalist to begin his financial education and experience early.
The Intelligent InvestorThe activities characteristic of the enterprising investor may be classified under four heads:
The Intelligent InvestorThe aggressive investor should obtain the best available estimates of what a number of stocks are worth, apart from their market price.
The Intelligent InvestorFrequently we find a discrepancy between price and value which arises from the public’s failure to realize the true situation of a company—this in turn being due to some complicated aspects of accounting or corporate relationships.
The Intelligent InvestorThe largest theoretical gains in the stock market are to be made not out fo the continuously prosperous companies but out those which experience wide visited—by buying their stocks at their depths and selling them at their heights.
The Intelligent Investor
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