Benjamin Graham :
"Let me close with a few words of counsel from an 80 year-old veteran of many a bull and many a bear market. Do those things as an analyst that you know you can do well, and only those things. If you can really beat the market by charts, by astrology, or by some rare and valuable gift of your own, then that’s the row you should hoe. If you’re really good at picking the stocks most likely to succeed in the next twelve months, base your work on the endeavor. If you can foretell the next important development in the economy, or in the technology, or in consumers’ preferences, and gauge its consequences for various equity values, then concentrate on that particular activity. But in each case you must prove to yourself by honest, no-bluffing self-examination, and by continuous testing of performance, that you have what it takes to produce worthwhile results.
If you believe – as I have always believed – that the value approach is inherently sound, workable, and profitable, then devote yourself to that principle. Stick to it, and don’t be led astray by Wall Street’s fashions, its illusions, and its constant chase after the fast dollar. Let me emphasize that it does not take a genius or even a superior talent to be successful as a value analyst. What it needs is, first, reasonable good intelligence; second, sound principles of operation; third, and most important, firmness of character."
"An investment operation is one which, upon thorough analysis, promises safety of principal and a satisfactory return. Operations not meeting these requirements are speculative." - Security Analysis
"Investment is most intelligent when it is most businesslike."
"In the old legend the wise men finally boiled down the history of mortal affairs into the single phrase, “This too will pass.” Confronted with a like challenge to distill the secret of sound investment into three words, we venture the motto, MARGIN OF SAFETY." - The Intelligent Investor
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - The Intelligent Investor
"Price is what you pay. Value is what you get."
Past buying and selling prices are irrelevant to the price and value now.
"In the short run, the market is a voting machine but in the long run, it is a weighing machine."
"Buy stocks like the way you would buy groceries, not the way you would buy perfume."
"You don't have to make it back the same way you lost it."
Stay in the game. How else do you expect to make it back?
Investing is a very humbling business. You may think you've got everything right but market can still prove you wrong.
Markets may trend up or down. Individual counters may be up or down. But our portfolio value should continue to exhibit higher highs and higher lows.
"The market can stay irrational longer than you can stay solvent.” - John Maynard Keynes
Start with the A's
In an interview with "Adam Smith" in October 1993 -
Adam Smith: If a younger Warren Buffett were coming into the investment field today, what areas would you tell him to point himself in?
Warren Buffett: Well, if he were doing – if he were coming in and working with small sums of capital I’d tell him to do exactly what I did 40-odd years ago, which is to learn about every company in the United States that has publicly traded securities and that bank of knowledge will do him or her terrific good over time.
Smith: But there’s 27,000 public companies.
Buffett: Well, start with the A’s.
"And right here let me say one thing: After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!" - Reminiscences of a Stock Operator
"Many shall be restored that now are fallen and many shall fall that now are in honor." -- Horace
P.S. Many, not ALL!!
" ... 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." - Graham
My top recommended books to read ( if you have limited time ) :
1. The Intelligent Investor - Benjamin Graham
2. The Long and Short of It - John Kay
3. Security Analysis - Benjamin Graham
4. Common Stocks and Uncommon Profits - Philip A. Fisher
1) All businesses have risks. Past results are just starting point for analyses of future possibilities. Actual investment results depend on future outcomes.
2) If you do not know the business or company well enough, or if you cannot trust the management enough, it is better to avoid. Also, frauds are difficult to detect. Remember Rule Number 1 : Never lose money.
3) Risk comes from not knowing what you’re doing. Diversification is protection against ignorance. (However) It makes little sense if you know what you are doing. Allocate funds accordingly.
4) Investment should only form part of your financial plan.
5) Decide on your own timeframe. Mine can be as fickle as within the day to inconveniently long time. Value investors probably do not have fixed timeframes. They have "price-versus-value-frames" instead.
6) Good luck!