Do not take yearly results too seriously. Instead, focus on four or five-year averages.

The speed at which a business success is recognized, furthermore, is not that important as long as the company's intrinsic value is increasing at a satisfactory rate. In fact, delayed recognition can be an advantage: It may give us the chance to buy more of a good thing at a bargain price.

Wide diversification is only required when investors do not understand what they are doing.

The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd.

When investing, pessimism is your friend, euphoria the enemy.

Don't pass up something that's attractive today because you think you will find something way more attractive tomorrow.