Confusing speculation with investment is always a mistake.

To have a true investment, there must be a true margin of safety. And a true margin of safety is one that can be demonstrated by figures, by persuasive reasoning, and by reference to a body of actual experience.

Avoid second-quality issues in making up a portfolio unless they are demonstrable bargains.

Since we have emphasized that analysis will lead to a positive conclusion only in the exceptional case, it follows that many securities must be examined before one is found that has real possibilities for the analyst. By what practical means does he proceed to make his discoveries? Mainly by hard and systematic work.

If fees consume more than 1% of your assets annually, you should probably shop for another adviser.

As in roulette, same is true of the stock trader, who will find that the expense of trading weights the dice heavily against him.

Both individual skill (art) and chance are important factors in determining success or failure.