Never buy a stock immediately after a substantial rise or sell one immediately after a substantial drop.

Undervaluations caused by neglect or prejudice may persist for an inconveniently long time, and the same applies to inflated prices caused by over-enthusiasm or artificial stimulants.

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

The value of any investment is, and always must be, a function of the price you pay for it.

The investor who permits himself to be stampeded or unduly worried by unjustified market declines in his holdings is perversely transforming his basic advantage into a basic disadvantage.

Mr. Market does not always price stocks the way an appraiser or a private buyer would value a business. Instead, when stocks are going up, he happily pays more than their objective value; and, when they are going down, he is desperate to dump them for less than their true worth.

Never buy a stock immediately after a substantial rise or sell one immediately after a substantial drop.