So while the smaller fast growers risk extinction, the larger fast growers risk a rapid devaluation when they begin to falter. - Peter Lynch

Since the early 1980s, the Berkshire annual reports have informed shareholders of the performance of the holdings of the company and new investments, updated the status of the insurance and the reinsurance industry, and (since 1982) have listed acquisition criteria about business Berkshire would like to purchase. The report is generously laced with examples, analogies, stories, and metaphors containing the do's and dont's of proper investing in stocks.

No wonder people make money in the real estate market and lose money in the stock market. They spend months choosing their houses, and minutes choosing their stocks. In fact, they spend more time shopping for a good microwave oven than shopping for a good investment.

The p/e ratio can be thought of as the number of years it will take the company to earn back the amount of your initial investment — assuming, of course, that the company’s earnings stay constant.