You know, the essence of investing is not knowing what will happen… it’s about having a rock-solid plan for every possible outcome. It’s the single biggest mindset shift that separates the pros from the amateurs. Let me break down why this is so powerful.
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Meaning
At its core, this quote flips the entire goal of investing on its head. It’s not about predicting the future; it’s about building an unshakable process.
Explanation
Look, so many people get caught up in the prediction game. They’re glued to screens, trying to guess the next market move. And it’s exhausting, right? Graham is telling us to stop that. The real power comes from your pre-defined rules. If the market drops 20%, you don’t panic—you *buy*, because your plan already accounted for that. If a stock you own triples, you don’t get greedy—you *trim*, because your plan has a sell discipline. It’s about controlling your reactions, not the market’s actions. That’s the secret sauce.
Quote Summary
| Context | Attributes |
|---|---|
| Original Language | English (3668) |
| Category | Personal Development (697) |
| Topics | discipline (252), preparation (15), response (5) |
| Literary Style | clear (348), motivational (245) |
| Emotion / Mood | realistic (354), strategic (66) |
| Overall Quote Score | 85 (305) |
Origin & Factcheck
This wisdom comes straight from the 1949 first edition of “The Intelligent Investor” by Benjamin Graham. It’s often misattributed to Warren Buffett, but this is 100% pure Graham. He was the original source, teaching this to Buffett at Columbia University long before it became a popular mantra.
Attribution Summary
| Context | Attributes |
|---|---|
| Author | Benjamin Graham (48) |
| Source Type | Book (4032) |
| Source/Book Name | The Intelligent Investor (48) |
| Origin Timeperiod | Modern (530) |
| Original Language | English (3668) |
| Authenticity | Verified (4032) |
Author Bio
Benjamin Graham, well known for investing community has brought investing to masses by focussing on analysis and risk control. After graduating from Columbia University, co-founded the Graham Newman Corporation. Benjamin Graham book list covers Security Analysis and The Intelligent Investor which shaped many generations of professionals. He is regarded as a mentor to Warren Buffett as his ideas form the basis of value investing.
Where is this quotation located?
| Quotation | The essence of investing is not knowing what will happen, but knowing what you will do when it happens |
| Book Details | Publication Year/Date: 1949; ISBN/Unique Identifier: 978-0060555665; Last edition: Revised Edition by Jason Zweig (2006), 640 pages. |
| Where is it? | Chapter 8, Approximate page 210 from 2006 edition |