Before you invest, you must ensure that you have realistically assessed your probability of being right and how you will react to the consequences of being wrong.

High valuations entail high risks.

Price fluctuations have only one significant meaning for the true investor. They provide him with an opportunity to buy wisely when prices fall sharply and to sell wisely when they advance a great deal.

Nothing important on Wall Street can be counted on to occur exactly in the same way as it happened before.

Before you invest, you must ensure that you have realistically assessed your probability of being right and how you will react to the consequences of being wrong.

To have a true investment, there must be a true margin of safety. And a true margin of safety is one that can be demonstrated by figures, by persuasive reasoning, and by reference to a body of actual experience.

The intelligent investor should recognize that market panics can create great prices for good companies and good prices for great companies.