Customer Quote by Benjamin Graham
““We recommended that the investor divide his holdings between high-grade bonds and leading common stocks; that the proportion held in bonds be never less than 25% or more than 75%, with the converse being necessarily true for the common-stock component; that his simplest choice would be to maintain a 50–50 proportion between the two, with adjustments to restore the equality when market developments had disturbed it by as much as, say, 5%.””
About This Quote
Source Book: The Intelligent Investor, 1949
Diversify by balancing bonds and stocks within set limits, adjusting when market shifts exceed a small tolerance.
In simple terms: Keep a balanced portfolio and rebalance when needed.
Key Takeaway
Maintain a 50‑50 split and adjust as markets move.
Themes
investment
diversification
risk management
Mood
analytical
practical
Type
financial
educational
When to use this quote
- retirement planning
- wealth building
- risk assessment
Key Concepts
portfolio allocation
financial planning
market volatility
Questions to Reflect On
- How often should you rebalance?
- What tolerance level fits your risk tolerance?
A Different Perspective
Rigid percentages may not suit all investors.
