You know, “The stock market is filled with individuals” who trade on emotion, not logic. It’s a classic Graham insight that separates the speculators from the true investors. This is the foundation of value investing.
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Meaning
At its heart, this quote is about the critical difference between price and intrinsic value. Price is what you pay; value is what you actually get.
Explanation
Let me break this down for you. The “price” is just a number on a screen, it’s a temporary thing, driven by fear, greed, and headlines. It’s noise. But the “value”? That’s the real deal. That’s the underlying worth of the business—its cash flow, its assets, its competitive advantage. Most people get so caught up in the daily ticker tape, watching a stock go up $2 or down $3, that they forget to ask the most important question: “What is this company actually worth?” They’re traders, not owners. And that distinction, my friend, is everything. It’s the difference between gambling and investing.
Quote Summary
| Context | Attributes |
|---|---|
| Original Language | English (3668) |
| Category | Wealth (107) |
| Topics | ignorance (10), value (44) |
| Literary Style | philosophical (434), witty (99) |
| Emotion / Mood | critical (18) |
| Overall Quote Score | 86 (262) |
Origin & Factcheck
This wisdom comes straight from Benjamin Graham’s 1949 masterpiece, The Intelligent Investor. He’s widely considered the father of value investing. You’ll sometimes see this quote misattributed to his famous student, Warren Buffett, but it’s 100% pure Graham.
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 stock market is filled with individuals who know the price of everything but the value of nothing |
| 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 198 from 2006 edition |