What then will we aim to accomplish in this book [and in this class]? Our main objective will be to guide the reader against the areas of possible substantial error and to develop policies with which he will be comfortable. We shall say quite a bit about the psychology of investors. For indeed, the investor’s chief problem – and even his worst enemy – is likely to be himself. (“The fault, dear investor, is not in our stars – and not in our stocks – but in ourselves….”) This has proved the more true over recent decades as it has become more necessary for conservative investors to acquire common stocks and thus to expose themselves, willy-nilly, to the excitement and the temptations of the stock market. By arguments, examples, and exhortation, we hope to aid our readers to establish the proper mental and emotional attitudes toward their investment decisions. We have seen much more money made and kept by “ordinary people” who were temperamentally well suited for the investment process than by those who lacked this quality, even though they had an extensive knowledge of finance, accounting, and stock market lore.
– Benjamin Graham*
Dear students and friends,
Just sending out a brief reminder of the immense value in learning, and applying, the principles taught in The Intelligent Investor. It’s hard to believe Graham wrote these words over 40 years ago. They are as relevant today as they were back then. With interest rates near all-time lows, it has, as he says, become necessary for conservative investors to expose themselves to the excitement and temptations of the stock market. There is a way, even for conservative investors, with the right approach, and the right temperament, to do quite well for themselves investing in the common stock of America’s leading corporations. Come to our class, or give me a call to learn more about Graham’s conservative, time-tested approach to investing.
* The Intelligent Investor – Revised Edition. 1973.
As quoted in First Collins Business Essentials Edition 2006. Page 8.