The Words from the Wise series consists of passages and quotes from renown investors and thinkers that contain timeless wisdom. This passage is from Benjamin Graham’s seminal treatise on investing The Intelligent Investor, a book Warren Buffett described as “By far the best book on investing ever written.” In this passage, Graham shares his perspective on how investors—in contrast with speculators—should view market fluctuations.
"The investor with a portfolio of sound stocks should expect their prices to fluctuate and should neither be concerned by sizeable declines nor become excited by sizeable advances. He should always remember that market quotations are there for his convenience, either to be take advantage of or to be ignored. He should never buy a stock because it has gone up or sell one because it has gone down. He would not be far wrong if this motto read more simply: 'Never buy a stock immediately after a substantial rise or sell one immediately after a substantial drop."
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