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

The most realistic distinction between the investor and the speculator is found in their attitude toward stock-market movements. 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. Market movements are important to him in a practical sense, because they alternately create low price levels at which he would be wise to buy and high price levels at which he certainly should refrain from buying and probably would be wise to sell.

In security analysis the prime stress is laid upon protection against untoward events. We obtain this protection by insisting upon margins of safety, or values well in excess of the price paid.

The only thing you should do with pro forma earnings is ignore them.

Avoid second-quality issues in making up a portfolio unless they are demonstrable bargains.

If you are shopping for common stocks, choose them the way you would buy groceries, not the way you would buy perfume.

Before you place your financial future in the hands of an adviser, it's imperative that you find someone who not only makes you comfortable but whose honesty is beyond reproach.