“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.”

While enthusiasm may be necessary for great accomplishments elsewhere, on Wall Street it almost invariably leads to disaster

Losing some money is an inevitable part of investing, and there’s nothing you can do to prevent it. But to be an intelligent investor, you must take responsibility for ensuring that you never lose most or all of your money.

THERE is widespread agreement among economists that abuse of credit constitutes one of the chief unwholesome elements in business booms and is mainly responsible for the ensuing crash and depression.

Experience teaches that the time to buy stocks is when their price is unduly depressed by temporary adversity. In other words, they should be bought on a bargain basis or not at all.

It’s nonsensical to derive a price/earnings ratio by dividing the known current price by unknown future earnings.

The qualitative factors upon which most stress is laid are the nature of the business and the character of the management. These elements are exceedingly important, but they are also exceedingly difficult to deal with intelligently.

The value of any investment is, and always must be, a function of the price you pay for it.

Stocks can be dynamite.

I quickly convinced myself that the true key to material happiness lay in a modest standard of living which could be achieved with little difficulty under almost all economic conditions.

Before you invest, you must ensure that you have realistically assessed your probability of being right and how you will react to the consequences of being wrong.

The intelligent investor gets interested in big growth stocks not when they are at their most popular – but when something goes wrong.

The ideal form of common stock analysis leads to a valuation of the issue which can be compared with the current price to determine whether or not the security is an attractive purchase.

Every corporate security may be best viewed, in the first instance, as an ownership interest in, or a claim against, a specific business enterprise.

The intelligent investor should recognize that market panics can create great prices for good companies and good prices for great companies.

Avoid second-quality issues in making up a portfolio unless they are demonstrable bargains.

Price fluctuations have only one significant meaning for the true investor. They provide him with an opportunity to buy wisely when prices fall sharply and to sell wisely when they advance a great deal.

It’s the quintessential Greek sport: harmonious, competitive, agonizing, nautical, and above all, intelligent. It combines Odysseus’s brains and brawn and love of the sea with the tactical precision of the Spartan pikeman.

When you buy into any version of fear, it can become your experience because your molecules are intelligent and your energy responds to the predominant feeling in your being. The focus of your mind is exactly what gives the orders to create what you experience.

They who assert that a blind fatality produced the various effects we behold in this world talk very absurdly; for can anything be more unreasonable than to pretend that a blind fatality could be productive of intelligent beings.

Breath is the vehicle of consciousness and so, by its slow measured observation and distribution, we learn to tug our attention away from external desires toward a judicious, intelligent awareness.

Backboneless employees are too ready to attribute the success of others to luck. Luck is usually the fruit of intelligent application. The man who is intent on making the most of his opportunities is too busy to bother about luck.

You have to create love and affection for your body, for what it can do for you. Love must be incarnated in the smallest pore of the skin, the smallest cell of the body to make them intelligent so they can collaborate with all the other ones, in the big republic of the body. This love must radiate from you to others.

As conditions are today, nothing can be more important to every intelligent man than economics. His own fate and that of his progeny are at stake.

An intelligent and conscientious opposition is a part of loyalty to country.