Ben Graham on Speculation
What is in the best interests of brokers--that is, maximizing commissions--is not in the best interests of investors.
Wall street historically has prospered from speculation, according to Ben Graham, but he believed that speculators themselves on the whole lose money. "Hence," he stated, "it has been logically impossible for brokerage houses to operate on a thoroughly professional basis."
If only we could actually listen to Graham, the father of Value Investing, and actually force ourselves to follow the above advice, we would all be:
- Richer
- Able to sleep peacefully at night
I must admit, however, that despite trying for at least a decade and beyond, I have not been able to overcome the temptation completely!
Regards,
N
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