© A Stock is not just a ticker symbol or an electronic blip; it is an ownership interest in an actual business, with an underlying value, that does not depend on its share price.
© An investment operation is one which , upon through analysis promises safety of principal and an adequate return. Operation not meeting these requirement are speculative.
© The defensive investor must confine himself to the shares of important companies with long record of profitable operations and in strong financial conditions.
** 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".
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