Able Quote by Benjamin Graham
“The investor has the benefit of the stock market's daily and changing appraisal of his holdings, 'for whatever that appraisal may be worth', and, second, that the investor is able to increase or decrease his investment at the market's daily figure - 'if he chooses'. Thus the existence of a quoted market gives the investor certain options which he does not have if his security is unquoted. But it does not impose the current quotation on an investor who prefers to take his idea of value from some other source.”
About This Quote
Source Book: The Intelligent Investor, Benjamin Graham, 1949
A quoted market gives investors flexibility to adjust positions daily, unlike unquoted securities which lack such options.
In simple terms: Market quotes allow daily buying or selling.
Key Takeaway
Use market liquidity to manage risk.
Themes
investment
market dynamics
liquidity
Mood
analytical
cautious
Type
financial
educational
When to use this quote
- stock trading
- portfolio rebalancing
- risk assessment
- financial planning
Key Concepts
options theory
valuation
risk management
Questions to Reflect On
- How do you decide when to adjust holdings?
- What safeguards protect against impulsive trades?
A Different Perspective
Liquidity can also increase volatility and emotional stress.
