“When profit margins of a whole industry rise because of repeated price increases, the indication is not a good one for the long-range investor.”
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The investor believes that the market price is judged based on the established standards of value, while the speculator bases all their judgment on market price.
To distinguish whether you are the intelligent investor or a speculator, ask yourself whether or not you would invest in a stock...
Buffett follows the Benjamin Graham school of value investing, which are :
Everything has a price, but not all prices appear on labels.
The price of investing success is not immediately obvious. It’s not a price tag you can see, so when the bill comes due, it doesn’t feel like a fee for getting something good. It feels like a fee for doing somethi...
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