• Thought of the Day

    Thought of the Day

    2000: It has been an old and sound principle that those who cannot afford to take risks should be content with a relatively low return on their invested funds. From this there has developed the general notion that the rate of return which the investor should aim for is more or less proportionate to the degree of risk he is ready to run. Our view is different. The rate of return sought should be dependent, rather, on the amount of intelligent effort the investor is willing and able to bear on his task.

    –Benjamin Graham, The Intelligent Investor (New York: HarperBusiness, 2003), p. 88.

Today in Financial History

1969: A giant new jet airplane — 231 feet long, weighing 735,000 pounds, and capable of carrying up to 490 passengers — makes its maiden flight. Before long, the Boeing 747 has made jet flight a commonplace of daily life for millions of travelers.

1966: The Vietnam-era bull market peaks, buoyed by defense spending and rising inflation, as the Dow Jones Industrial Average closes the day at 995.15 — a level it will not reach again until October 11, 1982. When you hear that stocks are a great long-term investment, bear in mind this period of nearly 17 years when they went nowhere.

1585: The Frankfurt Stock Exchange (Frankfurter Wertpapierborse) is established.

Museum of American Financial History.