Quotes

Stocks Are Going up, Should You Buy? Going Down, Should You Sell?

By Kanwal Sarai
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benjamin-ben-grahamStocks prices go up and down all the time. When is the best time to buy and sell?

For those of you not familiar with Benjamin Graham he was Warren Buffet’s mentor and teacher. Graham is also considered the grandfather of value investing.

Here's what Benjamin Graham had to say about buying and selling:

*The investor with a portfolio of sound stocks should expect prices to fluctuate and should neither be concerned by sizable declines nor become excited by sizable advances. He should always remember that market quotations are there for his convenience, either to be taken advantage of or to be ignored. He should never buy a stock because it has gone up or sell one because it has gone down. He would not be far wrong if this motto read more simply: “Never buy a stock immediately after a substantial rise or sell one immediately after a substantial drop."

In other words, expect prices to fluctuate but don't panic. In the Simply Investing course I teach you how to know when a stock is worth buying (when its undervalued) and when its worth selling (when its overvalued). Focus on these key concepts and avoid the stock market hype portrayed in the media.

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*The Intelligent Investor, by Benjamin Graham, p. 206

Photo courtesy of: http://www.businessinsider.com/eight-lessons-from-benjamin-graham-2013-2
Comments
  • Derek at Moneyahoy.com
    Reply

    That’s pretty wise advice from Graham. I wish I would have run across his book The Intelligent Investor about 5 years earlier than I did :-) It would have saved me a lot of pain.

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