Investor Mindset

“The investor cannot enter the arena of the stock market with any real hope of success unless he is armed with mental weapons that distinguish him in kind (not in a fancied superior degree) from the trading public.  One such weapon is indifference to stock market fluctuations; such an investor buys carefully when he has money to place and then lets prices take care of themselves.”

“But if the investor intends to buy and sell recurrently, his weapons must be a frame of mind and a principle of action which are basically different from those of the trader and speculator.  He must deal in values, not in price movements.  He must be relatively immune to optimism or pessimism and impervious to business or stock-market forecasts.  In a word, he must be psychologically prepared to be a true investor and not a speculator masquerading as an investor.  If he can meet this test, he will be a member not of the public but of a specialized and self-disciplined group.”

Benjamin Graham

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