Intelligent Investing

<Excerpt from 'The Essays of Warren Buffet'>

1. A fast-changing industry environment may offer the chance for huge wins, but it precludes the certainty we week.

2. Obviously many companies in high-tech business or embryonic industries will grow much faster than percentage terms than will The Inevitables. But I would rather be certain of a good result than hopeful of a great one.

3. Investors making purchases in an overheated market need to recognize that it may often take an extended period for the value of even an outstanding company to catch up with the price they paid.

4. While an investor needs is the ability to correctly evaluate selected businesses. Note that word "selected": You don't have to be an expert on every company, or even many. You only have to be able to evaluate companies within your circle of competence. The size of that circle is not very important; knowing its boundaries, however, is vital.

5. In our view, though, investment students need only two well-taught courses - How to Value a Business, and How to Think About Market Prices.

6. If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes.