Graham emphasizes the dangers of overvaluation and speculative investments. He illustrates this with the example of EMC's CEO, Michael Ruettgers, who, in 1999, claimed that the company's stock was not overvalued despite its high price. Graham warns that such overconfidence often leads to financial missteps. He states, 'Investing on the basis of projection is a fool’s errand; even the forecasts of the so-called experts are less reliable than the flip of a coin.' This highlights the importance of skepticism and thorough research before investing. | Benjamin Graham | The Intelligent Investor

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The Pitfalls of Overvaluation and Speculation

Graham emphasizes the dangers of overvaluation and speculative investments. He illustrates this with the example of EMC's CEO, Michael Ruettgers, who, in 1999, claimed that the company's stock was not overvalued despite its high price. Graham warns that such overconfidence often leads to financial missteps. He states, 'Investing on the basis of projection is a fool’s errand; even the forecasts of the so-called experts are less reliable than the flip of a coin.' This highlights the importance of skepticism and thorough research before investing.

-- Benjamin Graham