Anodyne
Tuesday, November 28, 2006
 
Benjamin Graham, The Intelligent Investor:

"Critics of the value approach to stock investment argue that listed common stocks cannot properly be regarded or appraised in the same way as an interest in a similar private enterprise, because the presence of an organized security market 'injects into equity ownership the new and extremely important attribute of liquidity.' But what this liquidity really means is, first, that the investor has the benefit and changing appraisal of his [sic] holdings, for whatever that appraisal may be worth, and, second, that the investor is able to increase or descrease his investment at the market's daily figure -- if he chooses. Thus the existence of a quoted market gives the investor certain options that he does not have if his security is unquoted. But it does not impose the current quotation on an investor who prefers to take his idea of value from some other source."
- posted by cjb @ 8:42 PM


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