Ben's Mr. Market allegory may seem out-of-date in today's investment world, in which most professionals and academicians talk of efficient markets, dynamic hedging and betas. Their interest in such matters is understandable, since techniques shrouded in mystery clearly have value to the purveyor of investment advice. After all, what witch doctor has ever achieved fame and fortune by simply advising 'Take two aspirins'?

Risk can be greatly reduced by concentrating on only a few holdings.

Learning how to live is much more important than learning how to make a living.

After 25 years of buying and supervising a great variety of businesses, Charlie [Munger] and I have not learned how to solve difficult business problems. What we have learned is to avoid them. To the extent we have been successful, it is because we have concentrated on identifying one-foot hurdles that we could step over rather than because we acquired any ability to clear seven-footers.

Only when you combine sound intellect with emotional discipline do you get rational behavior.

Investment students need only two well-taught courses - How to Value a Business and How to Think About Market Prices

We're still in a recession. We're not gonna be out of it for a while, but we will get out.