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

Most of the time common stocks are subject to irrational and excessive price fluctuations in both directions as the consequence of the ingrained tendency of most people to speculate or gamble... to give way to hope, fear and greed.

Both individual skill (art) and chance are important factors in determining success or failure.

An intelligent investor gets satisfaction from the thought that his operations are exactly opposite to those of the crowd.

To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks.

By refusing to pay too much for an investment, you minimize the chances that your wealth will ever disappear or suddenly be destroyed.

By developing your discipline and courage, you can refuse to let other people's mood swings govern your financial destiny. In the end, how your investments behave is much less important than how you behave.