Quote for the Week
Not long ago I was told of a counsel being given by a large Wall Street banking firm to the effect that an investor is foolish to own any bonds at all, since all he can expect from them is a decrease in the value by reason of inflation. This may seem like good advice to those familiar only with the history of the past 12 years, but to one like myself, who has experienced personally the ups and downs of the past 47 years and has studied those of many decades previously, this counsel seems to be short-sighted and rash.
My motto would be taken from my favorite poet, Virgil. It has only three words: “In utrumque paratus” — “Ready for either event.”
Own common stocks, if you wish, in order to protect yourself against serious further erosion of the dollar and in order to participate in the excitement of our spectacular bull market. But be sure you own enough bonds to safeguard both your financial strength and your peace of mind against the inevitable day of reckoning for the now happy breed of stock market speculators. — Ben Graham (source)
From the Archives
Last Call
- A Bear-Case Scenario for the Long-Term Diversified Investor – TKer
- What Is Driving Rates Higher and Bonds Lower? – B. Ritholtz
- Why Bonds Matter – Humble Dollar
- Why Imagining the Worst Can Be for the Best – D. Crosby
- Is What You’ve Been Taught About Biases Wrong? – Clear Thinking
- The Technology of Foolishness – Investment Master Class
- The Berkshire Letters: A Visual History – BRK Letters
- Trade Means Wealth: Antiquity Edition – Klement on Investing
- Why Barcodes are About to Go Extinct – The Hustle
- Things that Apparently Cause Cancer – EcoModernist