• You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right.

• We do not view the company itself as the ultimate owner of our business assets but instead view the company as a conduit through which our shareholders own assets.

• When Berkshire buys common stock, we approach the transaction as if we were buying into a private business.

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

• Never invest in a business you cannot understand.

• Unless you can watch your stock holding decline by 50% without becoming panic-stricken, you should not be in the stock market.

• The critical investment factor is determining the intrinsic value of a business and paying a fair or bargain price.

• Risk can be greatly reduced by concentrating on only a few holdings.

• Stop trying to predict the direction of the stock market, the economy, interest rates, or elections.

• Buy companies with strong histories of profitability and with a dominant business franchise.

• Be fearful when others are greedy and greedy only when others are fearful.

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