The Two Golden Rules of Safe Stock Investing

The guru of Stock Investing; Benjamin Graham said "In the short term the stock market behaves like a voting machine and in the long term like a weighing machine".

This is a precise insight about how the stock market works because while stock prices in the short term are affected by sentiments and availability of money, in the long run they reflect the true worth of the business behind it. Thus while there may be some short term deviations, the stock price of a strong business, capable of generating increasing profits will steadily increase year on year.

Knowing this will certainly reduce the fear we all have about stock investing. When you invest over the long term, gains can be made, provided you follow the Two Golden Rules of Safe Stock Investing; a way of investing that ensures high returns, without exposing you to high risks.

Following links will guide you through the Two Golden Rules of Safe Stock Investing:

1. First Golden Rule of Safe Stock Investing
2. Second Golden Rule of Safe Stock Investing