In the world of securities, courage becomes the supreme virtue after adequate knowledge and a tested judgment are at hand.

No statement is more true and better applicable to Wall Street than the famous warning of Santayana: "Those who do not remember the past are condemned to repeat it".

It always seemed, and still seems, ridiculously simple to say that if one can acquire a diversified group of common stocks at a price less than the applicable net current assets alone - after deducting all prior claims, and counting as zero the fixed and other assets - the results should be quite satisfactory.

Confusing speculation with investment is always a mistake.

Abnormally good or abnormally bad conditions do not last forever.

Although there are good and bad companies, there is no such thing as a good stock; there are only good stock prices, which come and go.

The purpose of this book is to supply, in the form suitable for laymen, guidance in the adoption and execution of an investment policy.