Simple Rules of Intelligent Investing

From Irving Kahn,

Read? Irving Kahn


Simple Rules of Intelligent Investing

1. Don't depend on recent or current figures to forecast future prices; remember that many others knew them before you did.
2. Prices are continuously molded by fears, hopes and unreliable estimates; capital is always at risk unless you buy better than average values.
3. Remember that many complex factors - such as accounting choices and the human problems with management and larger shareholders - lie behind reported earnings.
4. Disregard the competition at your peril - they are always attacking your company's trade position and its earning.
5. Don't trust quarterly earnings. Verify reports through source and application statement. Figure can lie and liars can figure.