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.

By refusing to pay too much for an investment, you minimize the chances that your wealth will ever disappear or suddenly be destroyed.

Buy when most people, including experts, are pessimistic, and sell when they are actively optimistic.

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

I am no longer an advocate of elaborate techniques of security analysis in order to find superior value opportunities.

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.

The essence of investment management is the management of risks, not the management of returns.