Know whether the gamble is mispriced

You're looking for a mispriced gamble. That's what investing is. And you have to know enough to know whether the gamble is mispriced. That's value investing.

- Charles Munger

Pay attention to other factors as well

The risk among any group of investors is that they only pay attention to what they already agree with. That's limiting in our opinion, and dangerous.

- Michael Mauboussin

Practical test

Making an investment decision is like formulating a scientific hypothesis and submitting it to a practical test. The main difference is that the hypothesis that underlies an investment decision is intended to make money and not to establish a universally valid generalization.

- George Soros

Think independently

You can't be a good value investor without being an independent thinker.

- Joel Greenblatt

Forget about 'Option'

You can be highly successful as an investor without having the slightest ability to value an option. What students should be learning is how to value a business. That's what investing is all about.

- Warren Buffett

Securities markets would give a bigger discount than negotiated transactions

Our experience has been that pro-rata portions of truly outstanding businesses sometimes sell in the securities markets at very large discounts from the prices they would command in negotiated transactions involving entire companies.

- Warren Buffett

Economy and the Indexes may not relate very well

During these seventeen years (1964-81), the size of the economy grew fivefold. The sales of the Fortune five hundred companies grew more than fivefold. Yet, during these seventeen years, the stock market went exactly nowhere.

- Warren Buffett