In an ideal world, the intelligent investor would hold stocks only when they are cheap and sell them when they become overpriced, then duck into the bunker of bonds and cash until stocks again become cheap enough to buy.

The qualitative factors upon which most stress is laid are the nature of the business and the character of the management. These elements are exceedingly important, but they are also exceedingly difficult to deal with intelligently.

In the world of securities, courage becomes the supreme virtue after adequate knowledge and a tested judgment are at hand.

We urge the beginner in security buying not to waste his efforts and his money in trying to beat the market. Let him study security values and initially test out his judgment on price versus value with the smallest possible sums.

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

Those with the enterprise lack the money and those with the money lack the enterprise to buy stocks when they are cheap.

In the old legend the wise men finally boiled down the history of mortal affairs into a single phrase: 'This too will pass.'