Top Highlights

• The firm-foundation theory argues that each investment instrument, be it a common stock or a piece of real estate, has a firm anchor of something called intrinsic value, which can be determined by careful analysis of present conditions and future prospects.
• Res tantum valet quantum vendi potest. (A thing is worth only what someone else will pay for it.)
• “In crowds it is stupidity and not mother-wit that is accumulated,” Gustave Le Bon noted
• The key to investing is not how much an industry will affect society or even how much it will grow, but rather its ability to make and sustain profits.
• A story I like to tell concerns a middle-aged woman who has a serious heart attack. As she is lying in the emergency room, she has a near-death experience in which she comes face to face with God. “Is this it?” she asks. “Am I about to die?” God assures her that she will survive and that she has thirty more years to live. Sure enough, she does surv...