In the great majority of cases we simply do not know enough about the industry or company to come to sensible judgments-in that situation we pass.

Energy deregulation will be the largest transfer of wealth in history.

The purpose of life is to be loved by as many people as possible among those you want to have love you

Inactivity strikes us as intelligent behavior.

It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.

The major asset in this category is gold, currently a huge favorite of investors who fear almost all other assets, especially paper money (of whose value, as noted, they are right to be fearful). Gold, however, has two significant shortcomings, being neither of much use nor procreative. True, gold has some industrial and decorative utility, but the demand for these purposes is both limited and incapable of soaking up new production. Meanwhile, if you own one ounce of gold for an eternity, you will still own one ounce at its end.

The banking business is no favorite of ours. When assets are twenty times equity - a common ratio in this industry - mistakes that involve only a small portion of assets can destroy a major portion of equity. And mistakes have been the rule rather than the exception at many major banks.