Buy not on optimism, but on arithmetic.

High valuations entail high risks.

The investor's chief problem - and even his worst enemy - is likely to be himself.

Undervaluations caused by neglect or prejudice may persist for an inconveniently long time, and the same applies to inflated prices caused by over-enthusiasm or artificial stimulants.

The margin of safety is always dependent on the price paid. It will be large at one price, small at some higher price, nonexistent at some still higher price.

Traditionally the investor has been the man with patience and the courage of his convictions who would buy when the harried or disheartened speculator was selling.

We define a bargain issue as one which, on the basis of facts established by analysis, appears to be worth considerably more that it is selling for.