Sublime

If you find great companies, value them carefully, and purchase them only at a discount to a reasonable valuation estimate, you’ll be fairly well insulated against the vicissitudes of market emotion.

invert the P/E and divide a firm’s earnings per share by its market price, we get an earnings yield.

Because multiple studies* have shown that over the long run, carefully selected and managed portfolios of personal angel investments—even those without a giant hit such as Pinterest—produce an average annual return of over 25 percent. Compared to average annual returns of 1 percent from bank accounts, 3 percent from bonds, 7 percent from stocks, 10

The single most important investment decision you will ever make may occur when you determine the split between stocks and bonds in your portfolio. No pressure.