It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.

• Buy only good companies!
• The risk with buying poorly performing companies is the permanent loss of capital, though the price may look cheap.
• Good companies are those that are consistently profitable with double-digit operating margins, have double-digit return on invested capital, and are growing at double-digit rates.
• Buy only good companies and buy them at reasonable prices.
• Beware of value traps.
• Don’t forget cycles.