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“A price decline is of no real importance to the bona fide investor unless it is either very substantial say, more than a third from cost or unless it reflects a known deterioration of consequence in the company's position. In a well-defined bear market many sound common stocks sell temporarily at extraordinary low prices. It is possible that the investor may then have a paper loss of fully 50 per cent on some of his holdings, without any convincing indication that the underlying values have been permanently affected.”

“The wind has a language, I would I could learn! Sometimes 'tis soothing, and sometimes 'tis stern, Sometimes it comes like a low sweet song, And all things grow calm, as the sound floats along, And the forest is lull'd by the dreamy strain, And slumber sinks down on the wandering main, And its crystal arms are folded in rest, And the tall ship sleeps on its heaving breast.”

“Sweet was the sound, when oft, at evening's close, Up yonder hill the village murmur rose; There as I passed, with careless steps and slow, The mingling notes came soften'd from below; The swain responsive as the milkmaid sung, The sober herd that low'd to meet their young; The noisy geese that gabbled o'er the pool, The playful children just let loose from school; The watch-dog's voice that bay'd the whispering wind, And the loud laugh that spoke the vacant mind; These all in sweet confusion sought the shade, And fill'd each pause the nightingale had made.”

“It is our argument that a sufficiently low price can turn a security of mediocre quality into a sound investment opportunity - provided that the buyer is informed and experienced and he practices adequate diversification. For, if the price is low enough to create a substantial margin of safety, the security thereby meets our criterion of investment.”