Estoric terms

Investors should be skeptical of history-based models. Constructed by a nerdy-sounding priesthood using esoteric terms such as beta, gamma, sigma and the like, these models tend to look impressive. Too often, though, investors forget to examine the assumptions behind the symbols. Our advice: Beware of geeks bearing formulas.

- Warren Buffett

US Treasury bond bubble

When the financial history of this decade is written, it will surely speak of the Internet bubble of the late 1990s and the housing bubble of the early 2000s. But the U.S. Treasury bond bubble of late 2008 may be regarded as almost equally extraordinary.

- Warren Buffett

No. of stocks to hold

Hold no more stocks than you can remain informed on.

- Peter Lynch

Capitalism requires a structure

Capitalism requires a structure and a value system that people believe in and can depend on.

- John Bogle

Companies to own

Our long-avowed goal is to be the "buyer of choice" for businesses - particularly those built and owned by families. The way to achieve this goal is to deserve it. That means we must keep our promises; avoid leveraging up acquired businesses; grant unusual autonomy to our managers; and hold the purchased companies through thick and thin (though we prefer thick and thicker).

- Warren Buffett

When to raise money

Remember, you raise money not when you need it, you raise money when it is available.

- Hasmukhbhai T. Parekh

Turn-around

The worse a situation becomes the less it takes to turn it around, the bigger the upside.

- George Soros