2. Wide diversification is only required when investors do not understand what they are doing.
3. Never invest in a business you cannot understand.
4. Unless you can watch your stock holding decline by 50% without becoming panic-stricken, you should not be in the stock market.
5. Why not invest your assets in the companies you really like? As Mae West said, "Too much of a good thing can be wonderful".
6. The critical investment factor is determining the intrinsic value of a business and paying a fair or bargain price.
7. Risk can be greatly reduced by concentrating on only a few holdings.
8. Buy companies with strong histories of profitability and with a dominant business franchise.
9. Be fearful when others are greedy and greedy only when others are fearful.
10. It is optimism that is the enemy of the rational buyer.
11. As far as you are concerned, the stock market does not exist. Ignore it.
12. The ability to say "no" is a tremendous advantage for an investor.
13. Much success can be attributed to inactivity. Most investors cannot resist the temptation to constantly buy and sell.
14. An investor needs to do very few things right as long as he or she avoids big mistakes.
15. An investor should ordinarily hold a small piece of an outstanding business with the same tenacity that an owner would exhibit if he owned all of that business.