Making Money on Wall Street a la Benjamin Graham
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 - not in a fancied superior degree - from the trading public. One possible weapon is indifference to market fluctuations; such an investor buys carefully when he has money to place and then lets prices take care of themselves. But, if the investor intends to buy and sell recurrently, his weapons must be a frame of mind and a principle of action which are basically different from those of the trader and speculator. He must deal in values, not in price movements. He must be relatively immune to optimism or pessimism and impervious to business or stock-market forecasts. In a word, he must be 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 a specialized and self-disciplined group.
Comments
No problem at all with the comments nor the quote.
However, adding $700 BILLION and now reading another proposed $800 BILLION of debt, over $1.5 TRILLION of debt in less than 6 months?
The amount of debt is accelerating. When that happens to an American family, it is called bankruptcy. When the US government does it, it is called bailing out those too big to fail.
How long is this sustainable? How long until no one wants to buy the debt of the US?
This is starting to remind me when I lied to my parents. I would tell a lie to try to cover that lie. Then I would lie again to explain that lie and then lie when the lies started to conflict. The pain would have been a lot less if I just ‘fessed up to the first lie. I think the pain would have been a lot less if we, the US citizens, had the guts to live within our means.
I do believe this is the proper frame of mind of an investor. Not recommended for Traders who are swayed with fluctuations of prices set by the sentiment of the public.
“One possible weapon is indifference to market fluctuations”
very contrary to Trading since they decide based on fluctuations.
i am all the way in Ghana and want to buy some stocks in the states, but this is proofing very difficult and faustrating, could you kindly help me get a broker in the States? for which i will soo much appreciate it,
Thank you
You know there are many people that are scared to invest because of the US debt, but if the US went into bankrupcy money wouldn’t matter anyway, the system would go up and what you have would be worthless anyway. Now the reciprical of that would be to invest in the down time, and the US pull itself out like it has done many times before. This situation is unique with the debt problem, and will have to be addressed eventually or the debt will do the addressing for us.