Putting Complex Investment Arithmetic into the Right Context

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“In 44 years of Wall Street experience and study. I have never seen dependable calculations made about common stock value that went beyond simple arithmetic of the most elementary alegbra.”

“… whenever calculus is brought in, you could take it as a warning signal that the operator was trying to substitute theory for experience, and usually also to give to speculation the deceptive guise of investment.”

Two ever relevent insights from the late Benjamin Graham (economist and professional investor) especially in light of modern high speed automated trading in today’s markets and the importance of market experience.

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