The dumbest reason in the world to buy a stock is because it's going up. And the dumbest reason to sell a stock is because it's going down. People do this every day, and it's a form of madness — they're letting the market tell them what to think instead of thinking for themselves.

The market is a voting machine in the short run and a weighing machine in the long run — but what most people miss is that the weighing takes far longer than anyone expects, which is precisely why so few investors ever collect the reward for being right.

Occasionally, the market does something so stupid it takes your breath away. The trick is to make sure you're there to take advantage of it — and that requires doing almost nothing most of the time, which is psychologically brutal for people who feel they're paid to act.

A stock is not just a ticker symbol or an electronic blip; it is an ownership interest in an actual business, with an underlying value that does not depend on its share price. The market is there to serve you, not to instruct you.

The stock promoter sells sizzle, but the great investor buys the business nobody is talking about yet. Most of the time the exciting story and the good investment are mutually exclusive — the more compelling the narrative, the more the price has already discounted the future.

The best time to buy is when there's blood in the streets. The second best time is when everyone else is buying.

The best time to buy is when there's blood in the streets. The best time to sell is when there's irrational exuberance. Most people do the opposite.

The great investors buy when others are fearful, and sell when others are greedy. But the converse is also true—they tend to avoid buying when others are greedy, even if the business is good. Temperament matters more than IQ.

The size of the opportunity is inversely proportional to how many people think it's an opportunity. If everyone believes something is a great opportunity, then by the time you get there, it's probably not.