Investment is most intelligent when it is most businesslike.
Meaning
Graham argued in the 1973 edition of The Intelligent Investor that buying a share should be treated like buying part of a business: study what it earns, owes and is worth. Apply it by reading a company's basic financials and judging the price before buying, instead of following tips.
Source: The Intelligent Investor, 4th revised edition (1973)
About the author
Benjamin Graham (1894-1976) was a British-born American economist and investor, widely known as the father of value investing. He wrote The Intelligent Investor and Security Analysis, and taught Warren Buffett.
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