Be Fearful When Others Are Greedy and Greedy When Others Are Fearful - Warren Buffett

There's a whole bunch of things I don't know a thing about — I just stay away from those. So, I stay within what I call my circle of competence.

Of course, a business with terrific economics can be a bad investment if the purchase price is excessive.

The primary test of managerial economic performance is the achievement of a high earnings rate on equity capital employed (without undue leverage, accounting gimmickry, etc.) and not the achievement of consistent gains in earnings per share. In our view, many businesses would be better understood by their shareholder owners, as well as by the general public, if managements and financial analysts modified the primary emphasis they place upon earnings per share, and upon yearly changes in that figure.