You know, the real key to making money in stocks isn’t some complex algorithm. It’s the simple, brutally difficult act of not getting scared out of them when the market tumbles. That’s the wisdom Graham handed down, and it’s more relevant today than ever.
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Meaning
The core message is that your own psychology, not market intelligence, is often the biggest barrier to investment success. It’s about emotional discipline over intellectual brilliance.
Explanation
Look, I’ve seen it a hundred times. The market dips 10%, panic sets in, and people sell at a loss. They’re not reacting to the company’s fundamentals—those are often fine. They’re reacting to fear. Graham is saying that the money isn’t made in the buying or the selling. The money is made in the waiting. In the holding. It’s about having the fortitude to see a downturn not as a catastrophe, but as a potential opportunity, or at the very least, a temporary and normal part of the cycle. The real work is internal. It’s managing the voice in your head that screams “Get out!” when you should be thinking, “What can I learn here?” or even, “Is this a chance to buy more of a great asset at a discount?”
Quote Summary
| Context | Attributes |
|---|---|
| Original Language | English (3668) |
| Category | Emotion (177) |
| Topics | confidence (100), consistency (66), fear (92) |
| Literary Style | clear (348), practical (126) |
| Emotion / Mood | encouraging (304), lively (108) |
| Overall Quote Score | 80 (256) |
Origin & Factcheck
This quote comes straight from the 1973 edition of “The Intelligent Investor,” written by Benjamin Graham. It’s often misattributed to his more famous student, Warren Buffett, but the philosophy is pure Graham—the man who literally wrote the book on value investing.
Attribution Summary
| Context | Attributes |
|---|---|
| Author | Benjamin Graham (48) |
| Source Type | Book (4032) |
| Source/Book Name | The Intelligent Investor (48) |
| Origin Timeperiod | Modern (527) |
| 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 real key to making money in stocks is not to get scared out of them |
| 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 205 from 2006 edition |