--- title: "Meaning & Key Takeaway of: The underlying factor here is the…" description: "\"“The underlying factor here is the tendency of the security markets to undervalue issues that are involved in any sort of complicated legal proceedings..." image: "https://sms4smile.com/quotes/i/aa1/benjamin-graham-1531_cybersecurity_the-underlying-factor-here-is-the-tenden_2431138.jpg" --- # The underlying factor here is the tendency of the security… ![“The underlying factor here is the tendency of the security markets to undervalue issues that are involved in any sort of complicated legal proceedings. An old Wall Street motto has been: “Never buy into a lawsuit.” This may be sound advice to the speculator seeking quick action on his holdings…” quote by Benjamin Graham](https://sms4smile.com/quotes/i/aa1/benjamin-graham-1531_cybersecurity_the-underlying-factor-here-is-the-tenden_2431138.jpg) [Download](https://sms4smile.com/quotes/i/aa1/benjamin-graham-1531_cybersecurity_the-underlying-factor-here-is-the-tenden_2431138.jpg) [Open image](https://sms4smile.com/quotes/i/aa1/benjamin-graham-1531_cybersecurity_the-underlying-factor-here-is-the-tenden_2431138.jpg) > ““The underlying factor here is the tendency of the security markets to undervalue issues that are involved in any sort of complicated legal proceedings. An old Wall Street motto has been: “Never buy into a lawsuit.” This may be sound advice to the speculator seeking quick action on his holdings. But the adoption of this attitude by the general public is bound to create bargain opportunities in the securities affected by it, since the prejudice against them holds their prices down to unduly low levels.\*”” [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. Market participants often undervalue securities tied to legal complexities, creating opportunities for savvy investors who ignore the bias. **In simple terms:** Legal issues depress stock prices, offering bargains. Key Takeaway Seek undervalued assets despite legal entanglements. Themes investment law valuation risk opportunity Mood cautious analytical Type financial strategic When to use this quote - stock analysis - venture capital - corporate acquisitions Key Concepts finance behavioral economics law valuation portfolio management legal risk Questions to Reflect On - How do you assess legal risk in an investment? - When might the “never buy into a lawsuit” advice fail? A Different Perspective Legal uncertainty can cause significant price volatility and risk. ★ ★ ★ ★ ★ No ratings yet [Cybersecurity](https://sms4smile.com/quotes/about/cybersecurity/) [Investing](https://sms4smile.com/quotes/about/investing/) [Low level](https://sms4smile.com/quotes/about/low-level/) [Markets Undervalue](https://sms4smile.com/quotes/about/markets-undervalue-282982/) [Securities](https://sms4smile.com/quotes/about/securities/) [Securities Affected](https://sms4smile.com/quotes/about/securities-affected-282983/) [Security Markets](https://sms4smile.com/quotes/about/security-markets-282984/) [Undervalue Issues](https://sms4smile.com/quotes/about/undervalue-issues-282985/) [Wall St](https://sms4smile.com/quotes/about/wall-st/) [Wall street](https://sms4smile.com/quotes/about/wall-street/) ## Related quotes > [Since we have emphasized that analysis will lead to a positive conclusion only in the exceptional case, it follows that many securities must be…](https://sms4smile.com/quotes/benjamin-graham/since-we-have-emphasized-that-analysis-will-lead-to-a-positive/) [Benjamin Graham](https://sms4smile.com/quotes/author/benjamin-graham/) > [The chief losses to investors come from the purchase of low-quality securities at times of favorable business conditions.](https://sms4smile.com/quotes/benjamin-graham/the-chief-losses-to-investors-come-from-the-purchase-of-low-quality/) [Benjamin Graham](https://sms4smile.com/quotes/author/benjamin-graham/) > [Even defensive portfolios should be changed from time to time, especially if the securities purchased have an apparently excessive advance and can be replaced…](https://sms4smile.com/quotes/benjamin-graham/even-defensive-portfolios-should-be-changed-from-time-to-time/) [Benjamin Graham](https://sms4smile.com/quotes/author/benjamin-graham/) > [If we assume that there are normal or standard income results to be obtained from investing money in securities, then the role of the…](https://sms4smile.com/quotes/benjamin-graham/if-we-assume-that-there-are-normal-or-standard-income-results-to-be/) [Benjamin Graham](https://sms4smile.com/quotes/author/benjamin-graham/) > [“stock or other securities while in possession of material nonpublic information or b) pass on material nonpublic information to others without express authorization”](https://sms4smile.com/quotes/anonymous/stock-or-other-securities-while-in-possession-of-material-nonpublic/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [I’ve worked in an economy that rewards someone who saves the lives of others on a battlefield with a medal, rewards a great teacher…](https://sms4smile.com/quotes/warren-buffett/i-ve-worked-in-an-economy-that-rewards-someone-who-saves-the-lives-of/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [However, if one has been playing the buy-and-hold game with quality securities, one has been exposed to a substantial amount of market risk because…](https://sms4smile.com/quotes/michael-burry/however-if-one-has-been-playing-the-buy-and-hold-game-with-quality/) [Michael Burry](https://sms4smile.com/quotes/author/michael-burry/) > [My looks arent going to help me explain mortgage-backed securities.](https://sms4smile.com/quotes/jenna-lee/my-looks-arent-going-to-help-me-explain-mortgage-backed-securities/) [Jenna Lee](https://sms4smile.com/quotes/author/jenna-lee/) > [More investment trusts securities were offered in September of 1929 even than in August - the total was above $600 million. However, the nearly…](https://sms4smile.com/quotes/john-kenneth-galbraith/more-investment-trusts-securities-were-offered-in-september-of-1929/) [John Kenneth Galbraith](https://sms4smile.com/quotes/author/john-kenneth-galbraith/) > [My parents worked as brokers at Oppenheimer securities. They managed to finagle me a job.](https://sms4smile.com/quotes/steve-eisman/my-parents-worked-as-brokers-at-oppenheimer-securities-they-managed/) [Steve Eisman](https://sms4smile.com/quotes/author/steve-eisman/) > [If you're trading individual securities, you're almost certainly making a mistake. Because most professional managers can't outperform their benchmarks, and there's little reason to…](https://sms4smile.com/quotes/richard-thaler/if-you-re-trading-individual-securities-you-re-almost-certainly/) [Richard Thaler](https://sms4smile.com/quotes/author/richard-thaler/) > [My career in academic research has not been involved with active management of securities. I've tried to understand risk-and-return relationships; also the pricing of…](https://sms4smile.com/quotes/myron-scholes/my-career-in-academic-research-has-not-been-involved-with-active/) [Myron Scholes](https://sms4smile.com/quotes/author/myron-scholes/) > [The Treasury Department would use the interest from these securities to hire U.S. companies to build Saudi Arabia - new cities, new infrastructure -…](https://sms4smile.com/quotes/john-perkins/the-treasury-department-would-use-the-interest-from-these-securities/) [John Perkins](https://sms4smile.com/quotes/author/john-perkins/) > [Security isn't securities. It's knowing that someone cares whether you are or cease to be.](https://sms4smile.com/quotes/malcolm-forbes/security-isn-t-securities-it-s-knowing-that-someone-cares-whether-you/) [Malcolm Forbes](https://sms4smile.com/quotes/author/malcolm-forbes/) > [Although the Internet makes it seem as if you have a direct connection to the securities market, you don't. 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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. 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