Buy not on optimism, but on arithmetic.

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

Observation over many years has taught us that the chief losses to investors come from the purchase of low-quality securities at times of good business conditions. The purchasers view the good current earnings as equivalent to 'earning power' and assume that prosperity is equivalent to safety.

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

Real investment risk is measured not by the percent that a stock may decline in price in relation to the general market in a given period, but by the danger of a loss of quality and earnings power through economic changes or deterioration in management.

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

Successful investing is about managing risk, not avoiding it.