From Security Analysis,
1940 edition:
“These intricacies of corporate accounting and financial
policies undoubtedly provide a broad field for the activities of the securities
analyst. There are unbounded opportunities for shrewd detective work, for
critical comparisons, for discovering and pointing out a state of affairs quite
different from that indicated by the publicized “per-share earnings.” That this
work may be of exceeding value cannot be denied. In a number of cases it will
lead to a convincing conclusion that the market price is far out of line with
intrinsic or comparative worth and hence to profitable action based upon this
sound foundation. But it is necessary to caution the analyst against
overconfidence in the practical utility of his findings. It is always good to know
the truth, but it may not always be wise to act upon it, particularly in Wall
Street. And it must always be remembered that the truth that the analyst uncovers
is first of all not the whole truth
and, secondly, not the immutable
truth. The result of his study is only a more
nearly correct version of the past. His information may have lost its
relevance by the time he acquires it, or in any event by the time the market
place is finally ready to respond to it.”