Most of the time common stocks are subject to irrational and excessive price fluctuations in both directions as the consequence of the ingrained tendency of most people to speculate or gamble... to give way to hope, fear and greed.

Never buy a stock immediately after a substantial rise or sell one immediately after a substantial drop.

A defensive investor can always prosper by looking patiently and calmly through the wreckage of a bear market.

To establish the right price for a stock, the market must have adequate information, but it by no means follows that is the market has this information it will thereupon establish the right price.

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

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