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.

If you are shopping for common stocks, choose them the way you would buy groceries, not the way you would buy perfume.

The value of any investment is, and always must be, a function of the price you pay for it.

Never buy a stock because it has gone up or sell one because it has gone down.

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.

An investor calculates what a stock is worth, based on the value of its businesses.

To see how much a company is truly earning on the capital it deploys in its businesses, look beyond EPS to Return on Invested Capital (ROIC).