A price decline is of no real importance to the bona fide investor unless it is either very substantial—say, more than a third from cost—or unless it reflects a known deterioration of consequence in the company's position. In a well-defined bear market many sound common stocks sell temporarily at extraordinary low prices. It is possible that the investor may then have a paper loss of fully 50 per cent on some of his holdings, without any convincing indication that the underlying values have been permanently affected.


Chapter II, The Investor and Stock-Market Fluctuations, p. 25 - The Intelligent Investor: The Classic Text on Value Investing (1949)

Benjamin Graham Quotes

A price decline is of no real importance to the bona fide investor unless it is either very substantial—say, more than a third from cost—or...

A price decline is of no real importance to the bona fide investor unless it is either very substantial—say, more than a third from cost—or...

A price decline is of no real importance to the bona fide investor unless it is either very substantial—say, more than a third from cost—or...

A price decline is of no real importance to the bona fide investor unless it is either very substantial—say, more than a third from cost—or...