“In the world of securities, courage becomes the supreme virtue after adequate knowledge and a tested judgment are at hand.”

The Reservoir system will function not only as an equalizer of business conditions, but also as a national store to meet further emergencies, such as war and drought, and-most important of all-as the concrete means of developing a steadily higher living standard for all.

High valuations entail high risks.

Most businesses change in character and quality over the years, sometimes for the better, perhaps more often for the worse. The investor need not watch his companies’ performance like a hawk; but he should give it a good, hard look from time to time.

It requires strength of character in order to think and to act in opposite fashion from the crowd and also patience to wait for opportunities that may be spaced years apart.

The distinction between investment and speculation in common stocks has always been a useful one and its disappearance is cause for concern.

Wall Street has a few prudent principles; the trouble is that they are always forgotten when they are most needed.

Calculate a stock’s price/earnings ratio yourself, using Graham’s formula of current price divided by average earnings over the past three years.

The memory of the financial community is proverbially and distressingly short.

The value of the security analyst to the investor depends largely on the investor’s own attitude. If the investor asks the analyst the right questions, he is likely to get the right or at least valuable answers.

The sillier the market’s behavior, the greater the opportunity for the business like investor.

there is a tendency in part of Wall Street people to pay excessive attention to the most recent figures and the present financial picture.

To enjoy a reasonable chance for continued better than average results, the investor must follow policies which are (1) inherently sound and promising, and (2) not popular on Wall Street.

Speculators often prosper through ignorance; it is a cliché that in a roaring bull market knowledge is superfluous and experience is a handicap. But the typical experience of the speculator is one of temporary profit and ultimate loss

Never mingle your speculative and investment operations in the same account nor in any part of your thinking.

Although there are good and bad companies, there is no such thing as a good stock; there are only good stock prices, which come and go.

Real investment risk is measured not by the percent that a stock may decline in price in relation to the general market in a given period, but by the danger of a loss of quality and earnings power through economic changes or deterioration in management.