Individuals who cannot master their emotions are ill-suited to profit from the investment process.
Benjamin GrahamRead
When somebody asserts that a stock has an earning power of so much, I am sure that the person who hears him doesn't know what he means, and there is a good chance that the man who uses it doesn't know what it means.
Interpretation
What this quote means
The quote highlights the complexity and ambiguity in financial terminology, particularly regarding stock earnings.
Benjamin Graham is emphasizing the often misunderstood nature of financial jargon, specifically earnings power in the context of stocks. He suggests that both the person making the assertion and the person receiving it may lack a clear understanding of the term, pointing to the confusion that can arise in financial discussions and the importance of being informed about such concepts.
Themes
StocksEarning PowerFinanceUnderstandingInvesting
In practice
Example use cases
During a finance seminar, you could use this quote to emphasize the need for clarity in financial discussions.
More from Benjamin Graham
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Obvious prospects for physical growth in a business do not translate into obvious profits for investors.
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To be an investor you must be a believer in a better tomorrow.
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While enthusiasm may be necessary for great accomplishments elsewhere, on Wall Street it almost invariably leads to disaster
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