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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…” quote by Benjamin Graham
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“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.”

Benjamin Graham

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.

Key Takeaway

Look for stocks with solid fundamentals.

Themes

investment value fundamentals stock analysis

Mood

analytical cautious

Type

financial educational

When to use this quote

  • portfolio selection
  • long‑term investing
  • risk assessment

Key Concepts

financial health earnings growth dividend yield balance sheet strength

Questions to Reflect On

  • How do you verify a company's earnings quality?
  • What balance‑sheet metrics matter most?
A Different Perspective

Market prices can be volatile short‑term, obscuring fundamentals.

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