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Never buy a stock immediately after a substantial rise or…

“Never buy a stock immediately after a substantial rise or sell one immediately after a substantial drop.” quote by Benjamin Graham
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“Never buy a stock immediately after a substantial rise or sell one immediately after a substantial drop.”

Benjamin Graham

About This Quote

This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.

Avoid buying stocks right after they jump or selling right after they plunge, because price swings often mislead rational judgment.

In simple terms: Don’t chase after big moves in the market.

Key Takeaway

Buy on dips, sell on highs, but with caution.

Themes

finance investment discipline

Mood

prudent cautious

Type

advisory educational

When to use this quote

  • stock trading
  • portfolio rebalancing
  • retirement planning
  • risk management

Key Concepts

value investing market timing behavioral finance

Questions to Reflect On

  • How do you determine a fair price?
  • What signals indicate a genuine trend?
A Different Perspective

Markets can stay irrational longer than you can stay solvent; timing is risky.

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