If you're prepared to invest in a company, then you ought to be able to explain why in simple language that a fifth grader could understand, and quickly enough so the fifth grader won't get bored.

When management owns stock, then rewarding the shareholders becomes a first priority, whereas when management simply collects a paycheck, then increasing salaries becomes a first priority.

Hold no more stocks than you can remain informed on.

Never invest in a company without understanding its finances. The biggest losses in stocks come from companies with poor balance sheets.

Equity mutual funds are the perfect solution for people who want to own stocks without doing their own research.

I deal in facts, not forecasting the future. That's crystal ball stuff. That doesn't work.

When stocks are attractive, you buy them. Sure, they can go lower. I've bought stocks at $12 that went to $2, but then they later went to $30. You just don't know when you can find the bottom.