Capitalism is the astounding belief that the most wickedest of men will do the most wickedest of things for the greatest good of everyone.

As time goes on, I get more and more convinced that the right method in investment is to put fairly large sums into enterprises which one thinks one knows something about and in the management of which one thoroughly believes. It is a mistake to think that one limits one's risk by spreading too much between enterprises about which one knows little and has no reason for special confidence. . . . One's knowledge and experience are definitely limited and there are seldom more than two or three enterprises at any given time in which I personally feel myself entitled to put full confidence.

A conventional valuation which is established as the outcome of the mass psychology of a large number of ignorant individuals is liable to change violently as the result of a sudden fluctuation of opinion due to factors which do not really make much difference to the prospective yield; since there will be no strong roots of conviction to hold it steady.

By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens.

The central principle of investment is to go contrary to the general opinion, on the grounds that if everyone agreed about its merits, the investment is inevitably too dear and therefore unattractive.

In this autumn of 1919, in which I write, we are at the dead season of our fortunes.

I know of only three people who really understand money. A professor at another university. One of my students. And a rather junior clerk at the Bank of England.