It should be remembered that a decline of 50% fully offsets a preceding advance of 100%.

Before you invest, you must ensure that you have realistically assessed your probability of being right and how you will react to the consequences of being wrong.

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

Have the courage of your knowledge and experience. If you have formed a conclusion from the facts and if you know your judgment is sound, act on it – even though others may hesitate or differ.

The market is a pendulum that forever swings between unsustainable optimism (which makes stocks too expensive) and unjustified pessimism (which makes them too cheap). The intelligent investor is a realist who sells to optimists and buys from pessimists.

A great company is not a great investment if you pay too much for the stock.

The function of the margin of safety is, in essence, that of rendering unnecessary an accurate estimate of the future.