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The years ahead will occasionally deliver major market declines — even panics — that will affect virtually all stocks. No one can tell you when these traumas will occur.

Predicting rain doesn’t count, building the ark does.

Only when the tide goes out do you discover who’s been swimming naked.

So smile when you read a headline that says ‘Investors lose as market falls.’ Edit it in your mind to ‘Disinvestors lose as market falls—but investors gain.’ Though writers often forget this truism, there is a buyer for every seller and what hurts one necessarily helps the other.

Widespread fear is your friend as an investor because it serves up bargain purchases.

【Twitter】Wide diversification is only required when investors do not understand what they are doing.

Diversification is protection against ignorance. It makes little sense if you know what you are doing.

Buy a stock the way you would buy a house. Understand and like it such that you’d be content to own it in the absence of any market.
