It is our argument that a sufficiently low price can turn a security of mediocre quality into a sound investment opportunity - provided that the buyer is informed and experienced and he practices adequate diversification. For, if the price is low enough to create a substantial margin of safety, the security thereby meets our criterion of investment.

The beauty of periodic rebalancing is that it forces you to base your investing decisions on a simple, objective standard.

Before you invest, you must ensure that you have realistically assessed your probability of being right and how you will react to the consequences of being wrong.

Experience teaches that the time to buy stocks is when their price is unduly depressed by temporary adversity. In other words, they should be bought on a bargain basis or not at all.

Investing is most intelligent when it is most businesslike.

The intelligent investor should recognize that market panics can create great prices for good companies and good prices for great companies.

Never mingle your speculative and investment operations in the same account nor in any part of your thinking.