Average Quote by Benjamin Graham
“In most cases the favorable price performance will be accompanied by a well-defined improvement in the average earnings, in the dividend, and in the balance-sheet position. Thus in the long run the market test and the ordinary business test of a successful equity commitment tend to be largely identical.”
About This Quote
Source Book: The Intelligent Investor, 1949
Successful stocks show better price returns and stronger earnings, dividends, and balance sheets, making market and business performance align over time.
In simple terms: Good stocks improve price, earnings, dividends, and balance sheets together.
Look for stocks with solid fundamentals.
Themes
Mood
Type
When to use this quote
- portfolio selection
- long‑term investing
- risk assessment
Key Concepts
Questions to Reflect On
- How do you verify a company's earnings quality?
- What balance‑sheet metrics matter most?
Market prices can be volatile short‑term, obscuring fundamentals.