Only in the exceptional case, where the integrity and competence of the advisers have been thoroughly demonstrated, should the investor act upon the advice of others without understanding and approving the decision made.

An investor calculates what a stock is worth, based on the value of its businesses.

Investing isn't about beating others at their game. It's about controlling yourself at your own game.

Although there are good and bad companies, there is no such thing as a good stock; there are only good stock prices, which come and go.

Never buy a stock because it has gone up or sell one because it has gone down.

Even with a margin of safety in the investor's favor, an individual security may work out badly. For the margin guarantees only that he has a better chance for profit than for loss - not that loss is impossible. But as the number of such commitments is increased the more certain does it become that the aggregate of the profits will exceed the aggregate of the losses.

The margin of safety is always dependent on the price paid. It will be large at one price, small at some higher price, nonexistent at some still higher price.