You know, “The intelligent investor buys from pessimists” isn’t just a line—it’s a battle-tested strategy. It’s all about finding value where others see only fear and capitalizing on the euphoria that inevitably follows. This is the core of what separates the pros from the amateurs.
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Meaning
It boils down to this: be a contrarian. The core message is to be greedy when others are fearful, and fearful when others are greedy. Profits are made in the pessimism and realized in the optimism.
Explanation
Okay, let’s break this down like we would a real trade. When pessimism is at its peak, that’s when assets are on sale. Think about it. The news is terrible, everyone is panicking, and they’re desperate to sell. That’s your opportunity. You’re buying solid companies or assets at a discount because the market is emotional, not logical.
Then, you wait. You’re patient. And when the cycle turns—and it always turns—the optimists rush back in. The mood is euphoric, prices are soaring beyond any reasonable value, and that’s when you quietly sell your position to them. You’re not trying to catch the very top; you’re selling to the people who are convinced it will go higher forever. That’s the entire game right there.
Quote Summary
| Context | Attributes |
|---|---|
| Original Language | English (3668) |
| Category | Wealth (107) |
| Topics | behavior (66), timing (16) |
| Literary Style | aphoristic (181), clear (348) |
| Emotion / Mood | strategic (66) |
| Overall Quote Score | 81 (258) |
Origin & Factcheck
This wisdom comes straight from Benjamin Graham’s 1949 classic, “The Intelligent Investor.” He was Warren Buffett’s professor and mentor, and this book is basically the bible of value investing. You’ll sometimes see the sentiment paraphrased or misattributed, but the core contrarian philosophy is pure Graham, straight from the source.
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 intelligent investor buys from pessimists and sells to optimists |
| 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 200 from 2006 edition |