In the short term, the stock market is a voting machine; in the long term, the stock market is a weighing machine.

The smartest way to invest is to treat yourself as the boss of the company you hold shares in.

Principles of investment: The first one, never lose money; the second one, never forget the first one.

If individual investors have correct investment principles and investment suggestions, over time, their investment performance will be far better than that of institutional investors. The investment targets of trust investment companies usually do not exceed 300, but retail investors can have as many as 3,000. The circulating quantity of real potential stocks is usually limited and cannot reach the scale of one-time purchase by legal persons; from this perspective, mechanical legal persons are not necessarily competitors of retail investors.

1974

Companies that price cyclically based on their "average profit margin" must not pay too high a premium for a given year's profits. By calculating the company's average annual profits over the past 7 to 10 years, you can also get a fairly accurate estimate of future average profits.

You won’t make money if you always do what is obvious or what everyone is doing. For rational investment, mental attitude is more important than skills.

Everyone knows that most people end up losing money in market transactions. Those who refuse to give up are either irrational, want to exchange money for fun, or have extraordinary talents. In any case, they are not investors.

The most practical difference between investors and speculators lies in their attitudes towards stock market movements: speculators are mainly interested in participating in market fluctuations and making profits from them, while investors are mainly interested in obtaining stocks at appropriate prices. and holding appropriate stocks.

Investment operations are based on thorough analysis to ensure the safety of principal and obtain satisfactory returns. Operations that fail to meet this requirement are speculation.

1934, Chapter 4 of "Securities Analysis"

The correct mental attitude towards price fluctuations is the touchstone of all successful stock investments.

For the speculator, timing is of psychological importance because he wants to make large profits in a short period of time, and the idea of ??waiting a year before his security rises does not suit him, and waiting time is irrelevant to investors.

Price fluctuations have only one important meaning for real investors: they provide investors with the opportunity to buy after a sharp price drop, and provide investors with the opportunity to sell after a sharp price rise.

Definition of cheap securities: It is a security based on factual analysis that shows that it is more valuable to hold than to sell.

Experience shows that in most cases, security depends on profitability. If profitability is insufficient, the asset will lose most of its reputation (or book) value.

It is almost impossible to distinguish in advance between those individual forecasts that can be relied upon and those that are subject to big mistakes, which is in fact one reason why investment funds are so widely diversified. The prevalence of widespread diversity is itself a process by which "selective" fetishes are rejected.

Any analyst's opinion that one stock is worth buying over the rest must be expanded beyond the limitations of his personal preferences and expectations. If all investors agree that a particular stock is better than the rest, that stock will quickly increase in price to such an extent that it offsets its prior benefit.

The vast majority of theoretical returns in the stock market are not created by companies that are in continuous prosperity, but by companies that experience ups and downs, by buying stocks when they are low and buying stocks when they are high. Sell ??what was created.

The behavior of the stock market must be a confusing one, otherwise people with a little knowledge can profit. Investors must look at the correlation between price levels and underlying or core value, rather than changes in what the market is doing or will do.

Past data does not provide a guarantee for future development, it is just a suggestion.

A basic principle in the investment approach: a correct generalization must always take price into account.

Dividends and market prices are fundamental in investment. They are the only concrete ways for external shareholders to recover their investment. It is true that factors such as income, economic strength and asset growth are also important to them. , but these are only so important when they immediately or eventually affect their dividends and market prices;

Under normal conditions, the safety margin of ordinary ordinary stocks purchased for investment is much higher than the current The expected profitability of bond interest rates.

The operations performed to obtain returns should not be based on faith but on arithmetic.

Many investors will shift their attention from visible fixed assets to intangible assets, such as operating capabilities and the essence of the enterprise, and this will secretly bring about risky thinking patterns for investors.

If a common stock is determined to be a good investment object, then the stock is also a good target for speculation.

Sooner or later, errors caused by the stock market will be corrected by the stock market itself. The market cannot turn a blind eye to obvious errors for a long time. Once such errors are corrected, it will be the time for discerning investors to make profits;

Investors’ attention should not be on the ticker, but on the company behind the equity certificate. By paying attention to earnings, assets, future prospects, and other factors, investors can form an idea of ??a company's "intrinsic value" independent of its market price.

The stock market is not a "weighing meter" that can accurately measure value. On the contrary, it is a "voting machine". The decisions made by countless people are a mixture of rationality and emotion. When it comes to things, there are many times when these choices are far from rational value judgments. The secret of investing is to invest when the price is far below the intrinsic value and believe that the market trend will rebound;

Investors should study a stock with the attitude of buying the entire company.

Irrepressible optimism can lead to fanatical speculation, and one of its most important characteristics is its inability to learn the lessons of history.

Be a patient investor and be willing to wait until the price of a company becomes attractive before buying stocks.

There is no sure, easy path to wealth, on Wall Street or anywhere else.

Only half of the state of a business is fact, and the other half is people's opinions.

Quantitative indicators are only useful if they are supported by qualitative survey results about the company.

Investors should only pay attention to two moments of stock price fluctuations, the timing of buying and selling. In other periods, stock price fluctuations are ignored.

You are correct because your facts are correct and your logic is correct, and this is the only thing that proves you are correct.