As Graham once put it, investors judge “the market price by established standards of value,” while speculators “base [their] standards of value upon the market price.”

We shall repeat here without apology—for the warning cannot be given too often—that the investor cannot hope for better than average results by buying new offerings, or “hot” issues of any sort, meaning thereby those recommended for a quick profit.†

If you have built castles in the air, your work need not be lost; that is where they should be. Now put the foundations under them.

away from ventures in which you have little to gain and much to lose.”

“Have the courage of your knowledge and experience. If you have formed a conclusion from the facts and if you know your judgment is sound, act on it—even though others may hesitate or differ.”

“Do not enter upon an operation—that is, manufacturing or trading in an item—unless a reliable calculation shows that it has a fair chance to yield a reasonable profit. In particular,

“Do not let anyone else run your business, unless (1) you can supervise his performance with adequate care and comprehension or (2) you have unusually strong reasons for placing implicit confidence in his integrity and ability.”

“Know what you are doing—know your business.”

can be demonstrated by figures, by persuasive reasoning, and by reference to a body of actual experience.