A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing (Twelfth Edition)

Second, money is a unit of account, the yardstick that is needed to post prices and record debts now and in the future.

It is intrinsically impossible to calculate the intrinsic value of a share.

if we are to cope with even a mild inflation, we must undertake investment strategies that maintain our real purchasing power; otherwise, we are doomed to an ever-decreasing standard of living.

Rule 3: A rational (and risk-averse) investor should pay a higher price for a share, other things equal, the less risky the company’s stock.

It is not hard to make money in the market. What is hard to avoid is the alluring temptation to throw your money away on short, get-rich-quick speculative binges.

the wisdom of Benjamin Graham, author of Security Analysis, who wrote that in the final analysis the stock market is not a voting mechanism but a weighing mechanism.

Mathematicians call a sequence of numbers produced by a random process (such as those on our simulated stock chart) a random walk.

GREED RUN AMOK has been an essential feature of every spectacular boom in history.

Rule 2: A rational investor should pay a higher price for a share, other things equal, the larger the proportion of a company’s earnings paid out in cash dividends or used to buy back stock.