Security Analysis Quotes.

1. "In other words, the market is not a weighing machine, on which the value of each issue is recorded by an exact and impersonal mechanism, in accordance with its specific qualities. Rather should we say that the market is a voting machine, whereon countless individuals register choices which are the product partly of reason and partly of emotion."
- Benjamin Graham, Security Analysis

2. "One example of a high-tech company that submits to a Graham type of analysis is Amazon.com. Though it does business exclusively on the Web, Amazon is essentially a retailer, and it may be evaluated in the same way as Wal-Mart, Sears, and so forth. The question, as always, is, does the business provide an adequate margin of safety at a given market price. For much of Amazon’s short life, the stock was wildly overpriced. But when the dot-com bubble burst, its securities collapsed. Buffett himself bought Amazon’s deeply discounted bonds after the crash, when there was much fearful talk that Amazon was headed for bankruptcy. The bonds subsequently rose to par, and Buffett made a killing."
- Benjamin Graham, Security Analysis

3. "The Interborough issues are an example of a rather special group of situations in which analysis may reach more definite conclusions respecting intrinsic value than in the ordinary case. These situations may involve a liquidation or give rise to technical operations known as arbitrage or hedging."
- Benjamin Graham, Security Analysis

4. "In all of these instances he appears to be concerned with the intrinsic value of the security and more particularly with the discovery of discrepancies between the intrinsic value and the market price."
- Benjamin Graham, Security Analysis

5. "I quickly convinced myself that the true key to material happiness lay in a modest standard of living which could be achieved with little difficulty under almost all economic conditions—the margin-of-safety idea applied to personal finance.21"
- Benjamin Graham, Security Analysis

6. "We must recognize, however, that intrinsic value is an elusive concept."
- Benjamin Graham, Security Analysis

7. "We are convinced that the public generally will derive far better results from fixed-value investments, if selected with exceeding care, than from speculative operations, even though these may be aided by considerable education in financial matters."
- Benjamin Graham, Security Analysis

8. "And I suspect that Graham and Dodd have been ignored by those who suffer from the misconception that trying to make serious money requires that one take serious risks."
- Benjamin Graham, Security Analysis

9. "Principle for the securities analyst: Nearly every issue might conceivably be cheap in one price range and dear in another."
- Benjamin Graham, Security Analysis

10. "The recurrent excesses of its advances and declines are due at bottom to the fact that, when values are determined chiefly by the outlook, the resultant judgments are not subject to any mathematical controls and are almost inevitably carried to extremes."
- Benjamin Graham, Security Analysis