There must certainly be a vast Fund of Stupidity in Human Nature, else Men would not be caught as they are, a thousand times over, by the same Snare, and while they yet remember their past Misfortunes, go on to court and encourage the Causes to which they were owing, and which will again produce them.
(While) the actual private object of most skilled investors today . . . is a battle of wits to anticipate the basis of conventional valuation a few months hence . . . the social object of investment should be to defeat the dark forces of time and ignorance which envelop our future.
a. Our investments will be chosen on the basis of value, not popularity.
b. Our investments will attempt to reduce the risk of permanent capital loss (not short-term quotation loss) to a minimum.
c. My wife, children and I will have virtually our entire net worth in the partnership.
The social object of skilled investment should be to defeat the dark forces of time and ignorance which envelop our future. The actual, private object of the most skilled investment today is ‘to beat the gun,’ as the Americans so well express it, to outwit the crowd, to pass the bad, or depreciating, half-crown to the
other fellow.This battle of wits to anticipate the basis of conventional valuation a few months hence . . . does not even require gulls amongst the public to feed the maws of the professional; it can be played by the professionals amongst themselves. Nor is it necessary that anyone should keep his simple faith in the conventional basis of valuation having any genuine long-term
He need pay attention to it and act upon it only to the extent
that it suits his book, and no more. Thus the investor who permits
himself to be stampeded or unduly worried by unjustified
market declines in his holdings is perversely transforming his
basic advantage into a basic disadvantage . . . price fluctuations
have only one significant meaning for the true investor. They
provide him with an opportunity to buy wisely when prices fall
sharply and to sell wisely when they advance a great deal. At
other times he will do better if he forgets about the stock market
and pays attention to his dividend returns and to the operating
results of his companies.
(While) the actual private object of most skilled investors today . . . is a battle of wits to anticipate the basis of conventional valuation a few months hence . . . the social object of investment should be to defeat the dark forces of time and ignorance which envelop our future.
a. Our investments will be chosen on the basis of value, not popularity.
b. Our investments will attempt to reduce the risk of permanent capital loss (not short-term quotation loss) to a minimum.
c. My wife, children and I will have virtually our entire net worth in the partnership.
The social object of skilled investment should be to defeat the dark forces of time and ignorance which envelop our future. The actual, private object of the most skilled investment today is ‘to beat the gun,’ as the Americans so well express it, to outwit the crowd, to pass the bad, or depreciating, half-crown to the
other fellow.This battle of wits to anticipate the basis of conventional valuation a few months hence . . . does not even require gulls amongst the public to feed the maws of the professional; it can be played by the professionals amongst themselves. Nor is it necessary that anyone should keep his simple faith in the conventional basis of valuation having any genuine long-term
He need pay attention to it and act upon it only to the extent
that it suits his book, and no more. Thus the investor who permits
himself to be stampeded or unduly worried by unjustified
market declines in his holdings is perversely transforming his
basic advantage into a basic disadvantage . . . price fluctuations
have only one significant meaning for the true investor. They
provide him with an opportunity to buy wisely when prices fall
sharply and to sell wisely when they advance a great deal. At
other times he will do better if he forgets about the stock market
and pays attention to his dividend returns and to the operating
results of his companies.
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