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

I am no longer an advocate of elaborate techniques of security analysis in order to find superior value opportunities.

It is our argument that a sufficiently low price can turn a security of mediocre quality into a sound investment opportunity - provided that the buyer is informed and experienced and he practices adequate diversification. For, if the price is low enough to create a substantial margin of safety, the security thereby meets our criterion of investment.

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

Even with a margin of safety in the investor's favor, an individual security may work out badly. For the margin guarantees only that he has a better chance for profit than for loss - not that loss is impossible. But as the number of such commitments is increased the more certain does it become that the aggregate of the profits will exceed the aggregate of the losses.

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

Have the courage of your knowledge and experience. If you have formed a conclusion from the facts and if you know your judgment is sound, act on it – even though others may hesitate or differ.