"We have found that there is a force at work in our common stock holdings which tends ever toward increasing their principal value in terms of dollars, a force resulting from the profitable reinvestment, by the companies involved, of their undistributed earnings. We have found that unless we have had the extreme misfortune to invest at the very peak of a noteworthy rise, those periods in which the average market value of our holdings remain less than the amount we paid for them are of comparatively short duration, and that even if we have bought at the very peak, there is definitely to be expected a period in which we may recover as many dollars as we have received. Our hazard even in such extreme cases appears to be that of time alone."
Quote Details
Added by wikiquote-import-bot
Unverified quote
0 likes
Businesspeople from the United StatesNon-fiction authors from the United StatesEconomists from the United States
Original Language: English
Available Languages (1)
Sources
p. 81
https://en.wikiquote.org/wiki/Edgar_Lawrence_Smith
Revision History
No revisions have been submitted for this quote.
Categories
Edgar Lawrence Smith
10 quotes on TrueQuotesView all quotes by Edgar Lawrence Smith →
Related Quotes
"The tests which are the subject of this discussion were devised to disclose how much reliance could be replaced upon …"
"It is assumed that the reader is familiar with some, at least, of the various conceptions of the business cycle curre…"
"Labor seeking higher wages is, in part, attacking the value of the dollar; farmers seeking higher prices for their pr…"
"The Dollar to-day is a different measure from the Dollar of yesterday."
""Safety of principal," yes—that is the first essential. But what is "principal"—is it merely the obligation of some s…"
"The economists would say that it is the upward "Secular Trend" that favors common stocks as opposed to bonds, so long…"
"In periods of high interest rates, such as were current in 1866, long term bonds are not freely offered, as the manag…"
"All lenders of money, particularly bondholders, favor an appreciating currency. No other class is always actively in …"
"In 1924, Edgar Lawrence Smith, an obscure economist and financial advisor, wrote Common Stocks as Long Term Investmen…"
"Scientific education is catholic; it embraces the whole field of human learning. No student can master all knowledge …"