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Key points
in 100 words

Key points in one hundred words

- The only reliable predictor of stock returns is the underlying business.

- If the underlying business is sound, the next thing is to buy the stock for as low a price as possible. Paying a low price is the best protection if it turns out you were wrong in your initial assessment of the value of the business (The Margin of Safety Principle).

- Have emotional discipline. Don't be influenced by the mood swings of the market. Market developments are often based on emotions, but not always based on reality.

- Diversify your portfolio to spread the risk.

- Think long term (Bull markets AND bear markets).

- Aim for adequate, not extraordinary.