--- title: "Meaning & Key Takeaway of: The investor should be aware that even…" description: "\"The investor should be aware that even though safety of its principal and interest may be unquestioned, a long term bond could vary widely in market pr..." image: "https://sms4smile.com/quotes/i/675/benjamin-graham-1531_interest_the-investor-should-be-aware-that-even-t_1488747.jpg" --- # The investor should be aware that even though safety of… ![“The investor should be aware that even though safety of its principal and interest may be unquestioned, a long term bond could vary widely in market price in response to changes in interest rates.” quote by Benjamin Graham](https://sms4smile.com/quotes/i/675/benjamin-graham-1531_interest_the-investor-should-be-aware-that-even-t_1488747.jpg) [Download](https://sms4smile.com/quotes/i/675/benjamin-graham-1531_interest_the-investor-should-be-aware-that-even-t_1488747.jpg) [Open image](https://sms4smile.com/quotes/i/675/benjamin-graham-1531_interest_the-investor-should-be-aware-that-even-t_1488747.jpg) > “The investor should be aware that even though safety of its principal and interest may be unquestioned, a long term bond could vary widely in market price in response to changes in interest rates.” [Benjamin Graham](https://sms4smile.com/quotes/author/benjamin-graham/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Investors must understand that bond prices can fluctuate despite principal safety, especially with interest‑rate changes. **In simple terms:** Bond values change with interest rates, even if principal is safe. Key Takeaway Monitor interest‑rate trends when holding bonds. Themes finance investment risk bond market Mood cautious analytical Type educational strategic When to use this quote - retirement planning - fixed‑income strategy - risk assessment Key Concepts duration risk interest‑rate sensitivity portfolio diversification Questions to Reflect On - What duration matches your risk tolerance? - How can you hedge bond price volatility? A Different Perspective Long‑term bonds may underperform in rising‑rate environments. ★ ★ ★ ★ ★ No ratings yet [Bond Vary](https://sms4smile.com/quotes/about/bond-vary-5439794/) [Customer](https://sms4smile.com/quotes/about/customer/) [Interest](https://sms4smile.com/quotes/about/interest/) [Interest rate](https://sms4smile.com/quotes/about/interest-rate/) [Investing](https://sms4smile.com/quotes/about/investing/) [Investor Aware](https://sms4smile.com/quotes/about/investor-aware-5439795/) [Investors](https://sms4smile.com/quotes/about/investors/) [Long](https://sms4smile.com/quotes/about/long/) [Long term](https://sms4smile.com/quotes/about/long-term/) [May](https://sms4smile.com/quotes/about/may/) [Principal](https://sms4smile.com/quotes/about/principal/) [Rate](https://sms4smile.com/quotes/about/rate/) [Response](https://sms4smile.com/quotes/about/response/) [Safety](https://sms4smile.com/quotes/about/safety/) [Should](https://sms4smile.com/quotes/about/should/) [Term](https://sms4smile.com/quotes/about/term/) [Term Bond](https://sms4smile.com/quotes/about/term-bond-5439796/) [Vary](https://sms4smile.com/quotes/about/vary/) [Vary Widely](https://sms4smile.com/quotes/about/vary-widely-430066/) ## Related quotes > [Cities vary widely in the use of DNA testing.](https://sms4smile.com/quotes/bill-dedman/cities-vary-widely-in-the-use-of-dna-testing/) [Bill Dedman](https://sms4smile.com/quotes/author/bill-dedman/) > [People do stop me a lot, and what is really very rewarding is that the ages of the people who stop me vary so…](https://sms4smile.com/quotes/geraldine-mcewan/people-do-stop-me-a-lot-and-what-is-really-very-rewarding-is-that-the/) [Geraldine McEwan](https://sms4smile.com/quotes/author/geraldine-mcewan/) > [“material. Although hooks vary widely in each of these categories, they all”](https://sms4smile.com/quotes/amy-wright/material-although-hooks-vary-widely-in-each-of-these-categories-they/) [Amy Wright](https://sms4smile.com/quotes/author/amy-wright/) > [Maybe it was true, and being a girl could be about interest rates and skinny jeans, riding bikes and wearing pink. Not about any…](https://sms4smile.com/quotes/sarah-dessen/maybe-it-was-true-and-being-a-girl-could-be-about-interest-rates-and/) [Sarah Dessen](https://sms4smile.com/quotes/author/sarah-dessen/) > [A tight-money policy reinforces inequality in two ways. Its high interest rates disproportionately reward the rich, and the resulting unemployment disproportionately punishes the poor.](https://sms4smile.com/quotes/linda-mcquaig/a-tight-money-policy-reinforces-inequality-in-two-ways-its-high/) [Linda McQuaig](https://sms4smile.com/quotes/author/linda-mcquaig/) > [And so the danger for the housing industry is if we see interest rates rise.](https://sms4smile.com/quotes/franklin-raines/and-so-the-danger-for-the-housing-industry-is-if-we-see-interest/) [Franklin Raines](https://sms4smile.com/quotes/author/franklin-raines/) > [Despite the deep reforms we are making, traders and speculators have forced interest rates on Greek bonds to record highs.](https://sms4smile.com/quotes/george-papandreou/despite-the-deep-reforms-we-are-making-traders-and-speculators-have/) [George Papandreou](https://sms4smile.com/quotes/author/george-papandreou/) > [Despite Russia's move to raise interest rates this week, the value of the ruble has continued to crash. Russia's economy is so bad, Edward…](https://sms4smile.com/quotes/jimmy-fallon/despite-russia-s-move-to-raise-interest-rates-this-week-the-value-of/) [Jimmy Fallon](https://sms4smile.com/quotes/author/jimmy-fallon/) > [The fact that equities are being sold down, despite the lowest interest rates in recent history, simply means that the market doesn't see growth…](https://sms4smile.com/quotes/john-c-malone/the-fact-that-equities-are-being-sold-down-despite-the-lowest/) [John C. Malone](https://sms4smile.com/quotes/author/john-c-malone/) > [A lower interest rate doesn't make a debt go away.](https://sms4smile.com/quotes/dave-ramsey/a-lower-interest-rate-doesn-t-make-a-debt-go-away/) [Dave Ramsey](https://sms4smile.com/quotes/author/dave-ramsey/) > [The insurance companies do not refer to the key policy rate when they send their statements. We can only control that rate. Long-term interest…](https://sms4smile.com/quotes/mario-draghi/the-insurance-companies-do-not-refer-to-the-key-policy-rate-when-they/) [Mario Draghi](https://sms4smile.com/quotes/author/mario-draghi/) > [I think we have a bubble in the US in government bonds, because of the quantitative easing and the negative real interest rates, and…](https://sms4smile.com/quotes/peter-thiel/i-think-we-have-a-bubble-in-the-us-in-government-bonds-because-of-the/) [Peter Thiel](https://sms4smile.com/quotes/author/peter-thiel/) > [Why, just a couple of economic seasons ago, was idle cash considered an indication of bad management or lazy management? Because it meant that…](https://sms4smile.com/quotes/malcolm-forbes/why-just-a-couple-of-economic-seasons-ago-was-idle-cash-considered-an/) [Malcolm Forbes](https://sms4smile.com/quotes/author/malcolm-forbes/) > [At times of recession, running a budget deficit is highly desirable. Once the economy begins to recover, you have to balance the budget. But…](https://sms4smile.com/quotes/george-soros/at-times-of-recession-running-a-budget-deficit-is-highly-desirable/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [Right now we're concerned about budget. Right now we're concerned about the prospect of interest rate rise. We're concerned about government corruption, government handing…](https://sms4smile.com/quotes/amity-shlaes/right-now-we-re-concerned-about-budget-right-now-we-re-concerned/) [Amity Shlaes](https://sms4smile.com/quotes/author/amity-shlaes/) ## More by Benjamin Graham > [The purpose of this book is to supply, in the form suitable for laymen, guidance in the adoption and execution of an investment policy.](https://sms4smile.com/quotes/benjamin-graham/the-purpose-of-this-book-is-to-supply-in-the-form-suitable-for-laymen/) [Benjamin Graham](https://sms4smile.com/quotes/author/benjamin-graham/) > [There is something paradoxical in the fact that by establishing an export market we subject our entire domestic production to the vagaries of that…](https://sms4smile.com/quotes/benjamin-graham/there-is-something-paradoxical-in-the-fact-that-by-establishing-an/) [Benjamin Graham](https://sms4smile.com/quotes/author/benjamin-graham/) > [Those with the enterprise lack the money and those with the money lack the enterprise to buy stocks when they are cheap.](https://sms4smile.com/quotes/benjamin-graham/those-with-the-enterprise-lack-the-money-and-those-with-the-money/) [Benjamin Graham](https://sms4smile.com/quotes/author/benjamin-graham/) > [It must be fundamentally wrong to reduce production of food and fiber while one-third of our population is still ill fed and ill clothed.](https://sms4smile.com/quotes/benjamin-graham/it-must-be-fundamentally-wrong-to-reduce-production-of-food-and-fiber/) [Benjamin Graham](https://sms4smile.com/quotes/author/benjamin-graham/) > [The intelligent investor is a realist who sells to optimists and buys from pessimists.](https://sms4smile.com/quotes/benjamin-graham/the-intelligent-investor-is-a-realist-who-sells-to-optimists-and-buys/) [Benjamin Graham](https://sms4smile.com/quotes/author/benjamin-graham/) > [Intelligent investment is more a matter of mental approach than it is of technique. A sound mental approach toward stock fluctuations is the touchstone…](https://sms4smile.com/quotes/benjamin-graham/intelligent-investment-is-more-a-matter-of-mental-approach-than-it-is/) [Benjamin Graham](https://sms4smile.com/quotes/author/benjamin-graham/) > [Many progressive economists insist that gold is now in essentially the same position as silver and that the arguments the simon-pure gold advocates use…](https://sms4smile.com/quotes/benjamin-graham/many-progressive-economists-insist-that-gold-is-now-in-essentially/) [Benjamin Graham](https://sms4smile.com/quotes/author/benjamin-graham/) > [The art of investment has one characteristic that is not generally appreciated. A creditable, if unspectacular, result can be achieved by the lay investor…](https://sms4smile.com/quotes/benjamin-graham/the-art-of-investment-has-one-characteristic-that-is-not-generally/) [Benjamin Graham](https://sms4smile.com/quotes/author/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…](https://sms4smile.com/quotes/benjamin-graham/we-have-not-known-a-single-person-who-has-consistently-or-lastingly/) [Benjamin Graham](https://sms4smile.com/quotes/author/benjamin-graham/) > [The essence of investment management is the management of risks, not the management of returns.](https://sms4smile.com/quotes/benjamin-graham/the-essence-of-investment-management-is-the-management-of-risks-not/) [Benjamin Graham](https://sms4smile.com/quotes/author/benjamin-graham/) > [Wall Street people learn nothing and forget everything.](https://sms4smile.com/quotes/benjamin-graham/wall-street-people-learn-nothing-and-forget-everything/) [Benjamin Graham](https://sms4smile.com/quotes/author/benjamin-graham/) > [In security analysis the prime stress is laid upon protection against untoward events. We obtain this protection by insisting upon margins of safety, or…](https://sms4smile.com/quotes/benjamin-graham/in-security-analysis-the-prime-stress-is-laid-upon-protection-against/) [Benjamin Graham](https://sms4smile.com/quotes/author/benjamin-graham/) > [Never buy a stock immediately after a substantial rise or sell one immediately after a substantial drop.](https://sms4smile.com/quotes/benjamin-graham/never-buy-a-stock-immediately-after-a-substantial-rise-or-sell-one/) [Benjamin Graham](https://sms4smile.com/quotes/author/benjamin-graham/) > [Observation over many years has taught us that the chief losses to investors come from the purchase of low-quality securities at times of good…](https://sms4smile.com/quotes/benjamin-graham/observation-over-many-years-has-taught-us-that-the-chief-losses-to/) [Benjamin Graham](https://sms4smile.com/quotes/author/benjamin-graham/) > [No matter how careful you are, the one risk no investor can ever eliminate is the risk of being wrong. Only by insisting on…](https://sms4smile.com/quotes/benjamin-graham/no-matter-how-careful-you-are-the-one-risk-no-investor-can-ever/) [Benjamin Graham](https://sms4smile.com/quotes/author/benjamin-graham/) [Explore all 229 Benjamin Graham quotes ](https://sms4smile.com/quotes/author/benjamin-graham/) ## More Customer quotes > [“Start a business, not a startup”](https://sms4smile.com/quotes/anonymous/start-a-business-not-a-startup/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [Amongst the financial Twitterati, the term 'muppets' has come to describe any client used and abused by some financial predator. I've adopted the term…](https://sms4smile.com/quotes/barry-ritholtz/amongst-the-financial-twitterati-the-term-muppets-has-come-to/) [Barry Ritholtz](https://sms4smile.com/quotes/author/barry-ritholtz/) > [Many early-stage entrepreneurs make one simple mistake: Describing this 'big picture' in vague concepts and words.](https://sms4smile.com/quotes/sunil-nagaraj/many-early-stage-entrepreneurs-make-one-simple-mistake-describing/) [Sunil Nagaraj](https://sms4smile.com/quotes/author/sunil-nagaraj/) > [The purpose of this book is to supply, in the form suitable for laymen, guidance in the adoption and execution of an investment policy.](https://sms4smile.com/quotes/benjamin-graham/the-purpose-of-this-book-is-to-supply-in-the-form-suitable-for-laymen/) [Benjamin Graham](https://sms4smile.com/quotes/author/benjamin-graham/) > [Don't think OF the market. Think AS the market.](https://sms4smile.com/quotes/michael-fishman/don-t-think-of-the-market-think-as-the-market/) [Michael Fishman](https://sms4smile.com/quotes/author/michael-fishman/) > [If Wall Street crashes, does Main Street follow? Not necessarily.](https://sms4smile.com/quotes/ben-bernanke/if-wall-street-crashes-does-main-street-follow-not-necessarily/) [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) > [The exact details of how you practice value investing will vary investor to investor, but the fundamental principle of scouring the world, looking for…](https://sms4smile.com/quotes/whitney-tilson/the-exact-details-of-how-you-practice-value-investing-will-vary/) [Whitney Tilson](https://sms4smile.com/quotes/author/whitney-tilson/) > [The best way to hold customers is to constantly figure out how to give them more for less.](https://sms4smile.com/quotes/philip-kotler/the-best-way-to-hold-customers-is-to-constantly-figure-out-how-to/) [Philip Kotler](https://sms4smile.com/quotes/author/philip-kotler/) > [Perhaps the most important reason to be skeptical of government inflation numbers is that the government, like a fox campaigning to guard a hen…](https://sms4smile.com/quotes/peter-schiff/perhaps-the-most-important-reason-to-be-skeptical-of-government/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [When the dollar collapses, it's not doing it in a vacuum. If the dollar loses value, it's doing so relative to some other currency.…](https://sms4smile.com/quotes/peter-schiff/when-the-dollar-collapses-it-s-not-doing-it-in-a-vacuum-if-the-dollar/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [Corporations invest in sophisticated CRM, or Customer Relationship Management, programs to effectively oversee their relationship with their customers at every point during the buying…](https://sms4smile.com/quotes/marc-ostrofsky/corporations-invest-in-sophisticated-crm-or-customer-relationship/) [Marc Ostrofsky](https://sms4smile.com/quotes/author/marc-ostrofsky/) > [I believe confusion is good. Worldwide market leaders gain when there is confusion in the market.](https://sms4smile.com/quotes/subhash-chandra/i-believe-confusion-is-good-worldwide-market-leaders-gain-when-there/) [Subhash Chandra](https://sms4smile.com/quotes/author/subhash-chandra/) > [Damn inflation, full speed ahead,' Greenspan has said in both action and word. I think an investor should believe him and invest accordingly.](https://sms4smile.com/quotes/bill-gross/damn-inflation-full-speed-ahead-greenspan-has-said-in-both-action-and/) [Bill Gross](https://sms4smile.com/quotes/author/bill-gross/) > [“When companies get big, they devote most of their care and feeding to the business that got them big. This is as it should…](https://sms4smile.com/quotes/eric-schmidt/when-companies-get-big-they-devote-most-of-their-care-and-feeding-to/) [Eric Schmidt](https://sms4smile.com/quotes/author/eric-schmidt/) > [“Salesmanship is usually the art of making it the prospect’s problem, the salesperson’s need or desire to earn money.”](https://sms4smile.com/quotes/mokokoma-mokhonoana/salesmanship-is-usually-the-art-of-making-it-the-prospect-s-problem/) [Mokokoma Mokhonoana](https://sms4smile.com/quotes/author/mokokoma-mokhonoana/) [Browse all 9,257 Customer quotes ](https://sms4smile.com/quotes/about/customer/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "The investor should be aware that even though safety of its principal and interest may be unquestioned, a long term bond could vary widely in market price in response to changes in interest rates.", "creator": { "@type": "Person", "name": "Benjamin Graham" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/benjamin-graham/the-investor-should-be-aware-that-even-though-safety-of-its-principal/", "about": { "@type": "Thing", "name": "Customer" }, "@id": "https://sms4smile.com/quotes/benjamin-graham/the-investor-should-be-aware-that-even-though-safety-of-its-principal/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/675/benjamin-graham-1531_interest_the-investor-should-be-aware-that-even-t_1488747.jpg", "contentUrl": "https://sms4smile.com/quotes/i/675/benjamin-graham-1531_interest_the-investor-should-be-aware-that-even-t_1488747.jpg", "url": "https://sms4smile.com/quotes/i/675/benjamin-graham-1531_interest_the-investor-should-be-aware-that-even-t_1488747.jpg", "width": 1080, "height": 1080, "caption": "“The investor should be aware that even though safety of its principal and interest may be unquestioned, a…” — Benjamin Graham", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Benjamin Graham", "item": "https://sms4smile.com/quotes/author/benjamin-graham/" }, { "@type": "ListItem", "position": 4, "name": "The investor should be aware that...", "item": "https://sms4smile.com/quotes/benjamin-graham/the-investor-should-be-aware-that-even-though-safety-of-its-principal/" } ], "@id": "https://sms4smile.com/quotes/benjamin-graham/the-investor-should-be-aware-that-even-though-safety-of-its-principal/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```