The investor's chief problem - and even his worst enemy - is likely to be himself.

No statement is more true and better applicable to Wall Street than the famous warning of Santayana: "Those who do not remember the past are condemned to repeat it".

It's nonsensical to derive a price/earnings ratio by dividing the known current price by unknown future earnings.

Calculate a stock's price/earnings ratio yourself, using Graham's formula of current price divided by average earnings over the past three years.

The intelligent investor is likely to need considerable will power to keep from following the crowd.

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

The defensive (or passive) investor will place chief emphasis on the avoidance of serious mistakes or losses. His second aim will be freedom from effort, annoyance, and the need for making frequent decisions.