Obvious prospects for physical growth in a business do not translate into obvious profits for investors.

The investor should be aware that even though safety of its principal and interest may be unquestioned, a long term bond could vary widely in market price in response to changes in interest rates.

The intelligent investor is a realist who sells to optimists and buys from pessimists.

Even defensive portfolios should be changed from time to time, especially if the securities purchased have an apparently excessive advance and can be replaced by issues much more reasonable priced.

Abnormally good or abnormally bad conditions do not last forever.

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

Speculative stock movements are carried too far in both directions, frequently in the general market and at all times in at least some of the individual issues.