"The market is a pendulum that forever swings between unsustainable optimism (which makes stocks too expensive) and unjustified pessimism (which makes them too cheap). The Intelligent Investor is a realist who sells to optimists and buys from pessimists."
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The Intelligent Investor: The Definitive Book on Value Investing by Benjamin Graham is a classic text on value investing and prudent financial management.
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An exchange traded fund (ETF) is a type of security that tracks an index, sector, etc... but which can be purchased or sold as a regular stock:
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