Sir John Templeton's method

Sir John Templeton had one of the best methods for keeping emotion out of the process. He used to do his calculations of intrinsic value when there wasn't a lot going on in the market. He'd then place a margin of safety on those intrinsic values and place buy orders with his broker at, say, 40% below the current market price.

- James Montier

Uncertainty of the future

An argument is made that there are just too many question marks about the near future; wouldn't it be better to wait until things clear up a bit?...face up to two unpleasant facts: The future is never clear [and] you pay a very high price for a cheery consensus. Uncertainty actually is the friend of the buyer of long term values.

- Warren Buffett

Buy troubled companies with ...

When purchasing depressed stock in troubled companies, seek out the ones with the superior financial positions and avoid the ones with loads of bank debt.

- Peter Lynch

Unfavorable industries?

It is natural to assume that industries which have fared worse than the average are "unfavorably situated" and therefore to be avoided. The converse would be assumed, of course, for those with superior records. But this conclusion may often prove quite erroneous. Abnormally good or abnormally bad conditions do not last forever. This is true not only of general business but of particular industries as well. Corrective forces are often set in motion which tend to restore profits where they have disappeared, or to reduce them where they are excessive in relation to capital.

- Benjamin Graham

Bear market after every christmas

Bear markets happen for a simple reason. The owners of the merchandise can't get their asking price. The shortage of buyers forces them to lower the fare, until a buyer can be coaxed into making a deal. It's a common occurrence in retail. Stores have a bear market after every Christmas rush.

- John Rothchild

Run at speed ...

You should run at a speed that would strengthen your muscles and if you run too fast it will affect your health.

- Dr Yaga Venugopal Reddy

Best protection against inflation

The best protection against inflation is your own earning power. If you are the best teacher, you will command earning power and get your share of the national economic pie, regardless of the value of the currency. The second best investment is in a good company.

- Warren Buffett

Buy part of business instead of ...

Regardless of the impact upon immediately reportable earnings, we would rather buy 10% of Wonderful Business T at X per share than 100% of T at 2X per share. Most corporate managers prefer just the reverse, and have no shortage of stated rationales for their behavior.

- Warren Buffett

Recognizing the direction of a trend

The genius of investing is recognizing the direction of a trend - not catching highs and lows.

- Anonymous

Predicting rain doesn't count...

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

- Warren Buffett

You gotta hit a few in the woods

The best advice is to learn from mistakes and move on. "If every shot you hit in golf was a hole-in-one, you'd lose interest," Warren Buffett has said. "You gotta hit a few in the woods."

- Anonymous

Reddy can recognise the devil

I cannot define God, but I can recognise the devil. And whenever I see the devil, I take precautionary measures to avoid being affected.

- Dr Yaga Venugopal Reddy

Buy the stocks when the business is bad

In 1954 the Dow was up 50 % and the country was in a recession. It was the best year I ever had in my life. It's a big mistake to say business is bad, therefore I shouldn't buy stocks. That usually is the time to buy stocks. And when everything is wonderful, it's not usually a very good time to buy stocks.

- Warren Buffett

Share buy back

The competitive nature of corporate acquisition activity almost guarantees the payment of a full - frequently more than full price when a company buys the entire ownership of another enterprise. But the auction nature of security markets often allows finely run companies the opportunity to purchase portions of their own businesses at a price under 50% of that needed to acquire the same earning power through the negotiated acquisition of another enterprise.

- Warren Buffett

Opinion poll

A public-opinion poll is no substitute for thought.

- Warren Buffett

Too big to be venal

We need to remove from the investment banking and the commercial banking industries a lot of the practices and prerogatives that they have so lovingly possessed. If they are too big to fail, they are too big to be allowed to be as gamey and venal as they've been -- and as stupid as they've been.

- Charles Munger

Risk-taking

Never test the depth of the river with both feet.

- Warren Buffett

Auditing

Beware of little expenses; A small leak can sink a large ship.

- Warren Buffett

Accounting

It's no use carrying an umbrella, if your shoes are leaking.

- Warren Buffett

Borrowings

The borrower becomes the lender's slave.

- Warren Buffett

Savings

Don't save what is left after spending; Spend what is left after saving.

- Warren Buffett

Spending

If you buy things you don't need, you'll soon sell things you need.

- Warren Buffett

Earnings

Never depend on single source of income.

- Warren Buffett

Lazy

A sleeping lobster is carried away by the water current.

- Warren Buffett

Stop predicting

Stop trying to predict the direction of the stock market, the economy, interest rates, or elections.

- Warren Buffett