“The only thing you should do with pro forma earnings is ignore them.”

Even defensive portfolios should be changed from time to time, especially if the securities purchased have an apparently excessive advance and can be replaced by issues much more reasonable priced.

The purpose of this book is to supply, in the form suitable for laymen, guidance in the adoption and execution of an investment policy.

The investor’s chief problem – and even his worst enemy – is likely to be himself.

Always buy your straw hats in the Winter

Those with the enterprise lack the money and those with the money lack the enterprise to buy stocks when they are cheap.

The beauty of periodic rebalancing is that it forces you to base your investing decisions on a simple, objective standard.

The people of the United States will not tolerate another deep depression that arises not from any lack of natural resources, productive capacity or man and brain power, but solely from imperfections in the functioning of the system of finance capitalism.

Confusing speculation with investment is always a mistake.

The market is a pendulum that forever swings between unsustainable optimism (which makes stocks too expensive) and unjustified pessimism (which makes them too cheap). The intelligent investor is a realist who sells to optimists and buys from pessimists.

Wall Street people learn nothing and forget everything.

The best values today are often found in the stocks that were once hot and have since gone cold.

Thus the important and difficult part of sound investment, which hinges upon the investor’s own temperament and attitude, is not much affected by the passing years.

For 99 issues out of 100 we could say that at some price they are cheap enough to buy and at some price they would be so dear that they would be sold.

In the short-run, the market is a voting machine – reflecting a voter-registration test that requires only money, not intelligence or emotional stability – but in the long- run, the market is a weighing machine.

The essence of investment management is the management of risks, not the management of returns.

Knowledge is only one ingredient on arriving at a stock’s proper price. The other ingredient, fully as important as information, is sound judgment.

The biggest asset you have is your earning capacity, and that depends entirely on your attitude.

Your biggest asset is a positive attitude. That more than anything else determines your earnings.

The Scoutmaster must be alert to check badge hunting as compared to badge earning.

If the Conservative is less anxious than his Liberal brethren to increase Social Security ‘benefits,’ it is because he is more anxious than his Liberal brethren that people be free throughout their lives to spend their earnings when and as they see fit

The youth of today are absolutely right in recognizing this nonsense of earning a wage.

As a woman you are better off in life earning your own money. You couldn’t prevent your husband from leaving you or taking another wife, but you could have some of your dignity if you didn’t have to beg him for financial support.

Clearly, sustained low inflation implies less uncertainty about the future, and lower risk premiums imply higher prices of stocks and other earning assets.

We can see that in the inverse relationship exhibited by price/earnings ratios and the rate of inflation in the past.