Confronted with a challenge to distill the secret of sound investment into three words, we venture the motto, Margin of Safety.

Successful investing is about managing risk, not avoiding it.

The sillier the market's behavior, the greater the opportunity for the business like investor.

Evidently stockholders have forgotten more than to look at balance sheets. They have forgotten also that they are owners of a business and not merely owners of a quotation on the stock ticker. It is time, and high time, that the millions of American shareholders turned their eyes from the daily market reports long enough to give some attention to the enterprises themselves of which they are the proprietors, and which exist for their benefit and at their pleasure.

The ideal form of common stock analysis leads to a valuation of the issue which can be compared with the current price to determine whether or not the security is an attractive purchase.

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.

We define a bargain issue as one which, on the basis of facts established by analysis, appears to be worth considerably more that it is selling for.