Comments on: Graham on Market Fluctuations

By: Ouch! TSX down 12% in 6 days

Ouch! TSX down 12% in 6 days — Wed, 10 Sep 2008 03:34:06 +0000

[...] markets are all at or near 52-week lows. The right thing to do in the face of market turmoil is to hang tough and maybe look for bargains. Personally, I’m fully invested with all the asset classes at or [...]

By: Weekly Dividend Investing Roundup - January 25, 2008 » The Dividend Guy Blog

Fri, 25 Jan 2008 14:58:09 +0000

[...] market is going to fluctuate. Simple. Canadian Capitalist brought some realism back into our minds with a quote from Benjamin [...]

By: Tony Danza

Tony Danza — Thu, 24 Jan 2008 21:44:45 +0000

“Never …sell one immediately after a substantial drop.” seems all the more poignant considering that the plummeting global markets and ensuing panic were likely the result of one “rogue” trader in Paris.

By: KS

KS — Thu, 24 Jan 2008 15:31:18 +0000

Great quote!! It is in times like these that one needs to remain patient.

By: Dragan

Dragan — Thu, 24 Jan 2008 15:31:14 +0000

This quote should be taken within the context of the rest of Graham’s book and that is that you always buy stock with a substantial margin of safety (for example bellow book value) so market declines of a stock will likely not fall bellow your initial investment.

By: Phil S

Phil S — Thu, 24 Jan 2008 14:38:12 +0000

MG: I think that is the big question that all investors struggle with. For me, the “buy” question depends upon the company fundamentals. If you like the company because it has strong fundamentals, then yes, by all means I’ll buy it if the stock price falls. It doesn’t make sense to buy a company whose stock is cheap if you don’t like the underlying business. The “sell” for me is very difficult to answer. I’ve been trying to switch from being a trader (who has historically tended to sell when I make more than 20% on a stock) to Warren Buffet’s strategy of having a “forever” time horizon… Aka NEVER selling.

By: Canadian Capitalist

Canadian Capitalist — Thu, 24 Jan 2008 14:11:30 +0000

MG: Graham thinks an investor should buy stocks as long as markets are not at a high level. By “high level” he means p/e based on an average of past three years earnings are not at very high levels.

Nancy: The book is full of great quotes. If you haven’t read it already, I highly recommend it.

By: nancy (aka money coach)

nancy (aka money coach) — Thu, 24 Jan 2008 06:45:06 +0000

what a great quote! If you don’t mind me asking, how on earth did you find it? (seems rather rarified)

By: moneygardener

moneygardener — Thu, 24 Jan 2008 01:45:10 +0000

Yes, but should one buy a stock after a substantial fall, or sell a stock after a substantial rise…?