The history of the past fifty years, and longer, indicates…
“The history of the past fifty years, and longer, indicates that a diversified holding of representative common stocks will prove more profitable over a stretch of years than a bond portfolio, with one important provisio that the shares must be purchased at reasonable market levels, that is, levels that are reasonable in the light of fairly well-defined standards derived from past experience.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Advocates diversified stock holdings bought at reasonable prices for long‑term profit, noting bonds underperform over time
In simple terms: Buy varied stocks at fair value for better returns than bonds
Key Takeaway
Invest in diversified equities at reasonable valuations
Themes
investment
value investing
risk diversification
Mood
analytical
prudent
Type
financial
educational
When to use this quote
- retirement planning
- wealth building
- financial advising
- asset allocation
Key Concepts
stock market cycles
valuation metrics
portfolio theory
Questions to Reflect On
- What criteria define a “reasonable” stock price?
- How will you adjust allocation as markets change?
A Different Perspective
Market timing and valuation judgments can be difficult