What the wise do in the beginning, fools do in the end. - Warren Buffett

Draw a circle around the businesses you understand and then eliminate those that fail to qualify on the basis of value, good management and limited exposure to hard times. ... Buy into a company because you want to own it, not because you want the stock to go up. ... People have been successful investors because they've stuck with successful companies. Sooner or later the market mirrors the business.

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

Read 500 pages like this every day. That’s how knowledge works. It builds up, like compound interest. All of you can do it, but I guarantee not many of you will do it.