Speculators often prosper through ignorance; it is a cliché that in a roaring bull market knowledge is superfluous and experience is a handicap. But the typical experience of the speculator is one of temporary profit and ultimate loss

Diversification is an established tenet of conservative investment.

We are convinced that the intelligent investor can derive satisfactory results from pricing of either type (market timing or fundamental analysis via price). We are equally sure that if he places his emphasis on timing, in the sense of forecasting, he will end up as a speculator and with a speculator's financial results." And "The speculator's primary interest lies in anticipating and profiting from market fluctuations. The investor's primary interest lies in acquiring and holding suitable securities at suitable prices.

The distinction between investment and speculation in common stocks has always been a useful one and its disappearance is cause for concern.

The true investor... will do better if he forgets about the stock market and pays attention to his dividend returns and to the operation results of his companies.

A speculator gambles that a stock will go up in price because somebody else will pay even more for it.

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.