The intelligent investor is likely to need considerable will power to keep from following the crowd.

Mr. Market's job is to provide you with prices; your job is to decide whether it is to your advantage to act on them. You no not have to trade with hime just because he constantly begs you to.

No statement is more true and better applicable to Wall Street than the famous warning of Santayana: "Those who do not remember the past are condemned to repeat it".

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.

Confronted with a challenge to distill the secret of sound investment into three words, we venture the motto, Margin of Safety.

As in roulette, same is true of the stock trader, who will find that the expense of trading weights the dice heavily against him.

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