The mark of a good value investor is a contrarian mindset and a long-term investment horizon. Pearls of wisdom from the value investment greats such as Benjamin Graham and David Dodd remain overwhelmingly influential and serve as useful reminders in every area of value investing. We’ve selected our favourite quotes from the very best investors, they’re always worth referring to from time to time.
To thrive as a value investor you have to "risk being called a dummy from time to time.
Christopher H. Browne
Face up to two unpleasant facts: the future is never clear and you pay a very high price in the stock market for a cheery consensus. Uncertainty is the friend of the buyer of long-term values.
Beware of little expenses; a small leak will sink a great ship.
There are those who don't know and those who don't know they don't know.
John Kenneth Galbraith
There can be few fields of human endeavour in which history counts for so little as in the world of finance
John Kenneth Galbraith
The investor's chief problem – even his worst enemy – is likely to be himself.
Undervaluations caused by neglect or prejudice may persist for an inconveniently long time, and the same applies to inflated prices caused by over-enthusiasm or artificial stimulants.
Having great clients is the key to investment success.
The single greatest edge an investor can have is a long-term orientation.
Value investing is at its core the marriage of a contrarian streak and a calculator.
(Value) investing is not a paint-by-numbers exercise. Skepticism and judgment are always required.
In the world of investing, being correct about something isn't at all synonymous with being proved correct right away.
It's the investor's job to intelligently bear risk for profit. Doing it well is what separates the best from the rest.
"The best opportunities are usually found among things most others won't do."
Great investors are not unemotional, but are inversely emotional – they get worried when the market is up and feel good when everyone is worried.
It's not supposed to be easy. Anyone who finds it easy is stupid.
If you buy all the stocks selling at or below two times earnings, you will lose money on half of them because instead of making profits they will actually lose money, but you will only lose a dollar or so a share at most. Then others will be mediocre performers. But the remaining big winners will go up and produce fabulous results and also ensure a good overall result.
If you want to have a better performance than the crowd, you must do things differently from the crowd.
To buy when others are despondently selling and to sell when others are euphorically buying takes the greatest courage, but provides the greatest profit.
It is easier to rationalize than it is to be rational.