Approach Quote by Benjamin Graham
“We have not known a single person who has consistently or lastingly make money by thus "following the market". We do not hesitate to declare this approach is as fallacious as it is popular.”
About This Quote
Consistently profiting by merely mirroring market movements is unrealistic; such a strategy is popular but fundamentally flawed.
In simple terms: Following the market rarely yields lasting profit.
Key Takeaway
Blind market‑following is fallacious.
Themes
investment
strategy
market behavior
Mood
critical
cautious
Type
financial insight
When to use this quote
- stock trading
- portfolio construction
Key Concepts
behavioral finance
risk management
Practical Applications
- adopt a value‑oriented approach
Questions to Reflect On
- What alternatives to market‑following exist?
- How can you test a strategy’s durability?
A Different Perspective
Some algorithmic traders succeed using market‑following tactics.
