The thing that I have been emphasizing in my own work for the last few years has been the group approach. To try to buy groups of stocks that meet some simple criterion for being undervalued-regardless of the industry and with very little attention to the individual company.

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

The distinction between investment and speculation in common stocks has always been a useful one and its disappearance is cause for concern.

Mr. Market does not always price stocks the way an appraiser or a private buyer would value a business. Instead, when stocks are going up, he happily pays more than their objective value; and, when they are going down, he is desperate to dump them for less than their true worth.

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

Individuals who cannot master their emotions are ill-suited to profit from the investment process.

It is our argument that a sufficiently low price can turn a security of mediocre quality into a sound investment opportunity - provided that the buyer is informed and experienced and he practices adequate diversification. For, if the price is low enough to create a substantial margin of safety, the security thereby meets our criterion of investment.