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

It would be wonderful if we could avoid the setbacks with timely exits, but nobody has figured out how to predict them.

You can't see the future through a rearview mirror

The list of qualities (an investor should have) include patience, self-reliance, common sense, a tolerance for pain, open-mindedness, detachment, persistence, humility, flexibility, a willingness to do independent research, an equal willingness to admit mistakes, and the ability to ignore general panic.

If a picture is worth a thousand words, in business, so is a number.

The worst thing you can do is invest in companies you know nothing about. Unfortunately, buying stocks on ignorance is still a popular American pastime.

Your ultimate success or failure will depend on your ability to ignore the worries of the world long enough to allow your investments to succeed.