Friday 6 August 2010

Investment Performance Depends on Intelligent Effort

Graham disagreed with the usual postulated risk-return relationship, that is, to earn a higher return an investor must accept higher risk. To the contrary, he felt that the more intelligent effort one put into investing, the better the bargains bought. And the better the bargains, the lower the risk.

Thus intelligent investing provides high yields and low risk. Finance academicians often fail to appreciate this point.

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