To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks.

High valuations entail high risks.

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

Mr. Market does not always price stocks the way an appraiser or a private buyer would value a business. Instead, when stocks are going up, he happily pays more than their objective value; and, when they are going down, he is desperate to dump them for less than their true worth.

The function of the margin of safety is, in essence, that of rendering unnecessary an accurate estimate of the future.

A stock is not just a ticker symbol or an electronic blip; it is an ownership interest in an actual business, with an underlying value that does not depend on its share price.

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.