Benjamin Graham wrote, "Those with enterprise haven't the money, and those with money haven't the enterprise, to buy stocks when they are cheap."

We are big fans of fear, and in investing it is clearly better to be scared than sorry.

Most investors are primarily oriented toward return, how much they can make and pay little attention to risk, how much they can lose.

As Buffett has often observed, value investing is not a concept that can be learned and gradually applied over time. It is either absorbed and adopted at once, or it is never truly learned.

By investing at a discount, Benjamin Graham knew that he was unlikely to experience losses.

Benjamin Graham wrote, "Those with enterprise haven't the money, and those with money haven't the enterprise, to buy stocks when they are cheap."

Investors need to pick their poison: Either make more money when times are good and have a really ugly year every so often, or protect on the downside and don't be at the party so long when things are good.