Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

32 of 40
BACK NEXT
What I learned from Ben Graham
Jean-Marie Eveillard
Manager, First Eagle Funds

It was 1968, and I was in Central Park with two French students who told me about Benjamin Graham's book, "The Intelligent Investor," which turned out to be about common sense. It has three lessons. The first is humility, that the future is uncertain. There are people on Wall Street who will predict the Dow will be at a certain level, but that is nonsense. The second thing is that because the future is uncertain, there's a need for caution.

The third thing was especially important. Graham values the idea that securities can be more than just paper. You should try to figure out the intrinsic value of a business. In the short term, the market is a voting machine where people vote with their dollars, but in the long term, it's a weighing machine that measures the realities of business.

NEXT: Always get it in writing

Last updated July 22 2008: 11:27 AM ET
More Galleries
10 of the best beaches near airports Wait out your layover in the transit lounge? Or grab some sun, sand and surf? More
World's Top Employers for New Grads For an exclusive CNNMoney list, research firm Universum Global surveyed business students at colleges around the world to see where they most want to work. More
A White House press briefing as told by CNN's sketch artist The White House started banning cameras during some briefings, so CNN sent in sketch artist Bill Hennessy. More

Special Offer