"Obvious prospects for physical growth in a business do not translate into obvious profits for investors."
— Benjamin Graham
Obvious Prospects For Physical Growth In
Obvious prospects for physical growth in a business do not translate into obvious profits for investors.
About this quote
From The Intelligent Investor (1949), Chapter 1 (revised 1973 edition). Graham was warning against the common error of paying for anticipated growth before it has materialized in earnings. A fast-growing business commands a premium price, which means investors must be right not only about the growth but also about the price being reasonable — a double burden that most growth investors underestimate.
Source
The Intelligent Investor, Chapter 1 (1949, revised 1973)
