Investing Adages

The intelligent investor realizes that stocks become more risky, not less, as their prices rise–and less risky, not more, as their prices fall. The intelligent investor dreads a bull market, since it makes stocks more costly to buy. And conversely (so long as you keep enough cash on hand to meet your spending needs), you should welcome a bear market, since it puts stocks back on sale. (Graham, The Intelligent Investor, 2003, p. 17)


The rate of return sought should be dependent, rather, on the amount of intelligent effort the investor is willing and able to bring to bear on his task.  The minimum return goes to our passive investor, who wants both safety and freedom from concern.  The maximum return would be realized by the alert and enterprising investor who exercises maximum intelligent and skill. (Graham, The integlligent investor, 2003, pg 88)

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