My fave excerpts:
A true investor seldom is forced to sell his shares
If you aren't certain that you understand and can value your business far better than Mr. market, you don't belong in the game
Price will tend to fluctuate around value. The price of the security is like a stopped clock it will be right twice a day, and will be wrong all the rest of the time. The main principle in what we are saying is that securities are chronically mispriced in relation to the intrinsic value.
I have found it useful to estimate the central value of the Dow Jones industrial average by the simple method of capitalizing 10 year average earnings at twice the interest rate for high-grade bonds.
Odlum decided the way to make money was to buy companies in trouble and revamp them. Graham debated with him, saying that it was safer to buy a variety of stocks. Odlum later invested all of his money in uranium companies. they went down and he had all his eggs in one basket.
A true investor seldom is forced to sell his shares
If you aren't certain that you understand and can value your business far better than Mr. market, you don't belong in the game
Price will tend to fluctuate around value. The price of the security is like a stopped clock it will be right twice a day, and will be wrong all the rest of the time. The main principle in what we are saying is that securities are chronically mispriced in relation to the intrinsic value.
I have found it useful to estimate the central value of the Dow Jones industrial average by the simple method of capitalizing 10 year average earnings at twice the interest rate for high-grade bonds.
Odlum decided the way to make money was to buy companies in trouble and revamp them. Graham debated with him, saying that it was safer to buy a variety of stocks. Odlum later invested all of his money in uranium companies. they went down and he had all his eggs in one basket.
