** The most basic possible definition of a good business is this: It generates more cash than it consumes. Good managers keep finding ways of ways of putting that cash to productive use.. In the long run, companies that fit this definition are virtually certain to grow in value. No matter what the stock market does.

®The investor with a portfolio of sound stocks should expect their prices to fluctuate and should neither be concerned by sizeble advances.

®Stock of a company with a lot of surplus cash and nothing ahead of the common is clearly a better purchase (at the same price) than an other one with the same per share earnings but large bank loans and senior securities.

Simply, by keeping your holdings permanently diversified and refusing to fling money at Mr. Market 's latest, craziest fashions, you can ensure that the consequeces of your mistakes will never be catastrophic. No matter what Mr. Market throws at you, you will always be able to say, with a quiet confidence" This, too, shall pass away".