The beauty of periodic rebalancing is that it forces you to base your investing decisions on a simple, objective standard.

Confusing speculation with investment is always a mistake.

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

An investor calculates what a stock is worth, based on the value of its businesses.

To have a true investment, there must be a true margin of safety. And a true margin of safety is one that can be demonstrated by figures, by persuasive reasoning, and by reference to a body of actual experience.

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

Experience teaches that the time to buy stocks is when their price is unduly depressed by temporary adversity. In other words, they should be bought on a bargain basis or not at all.