Math

“The analysis of security values is not an abstruse science. While in essence mathematical, it does not soar into the realms of calculus — in fact, it rarely gets as far as algebra.”

“In the halcyon days of prosperity, the investor is satisfied with increased dividends and a rising market, and cares very little about dry statistics.”

“The only thing you can be sure of is that there are times when large numbers of stocks are priced too high and other times when they’re priced too low.”

“In 44 years of Wall Street experience and study, I have never seen dependable calculations made about common stock values, or related investment policies, that went beyond simple arithmetic or the most elementary algebra.”

“Mathematics is ordinarily considered as producing precise and dependable results; but in the stock market the more elaborate and abstruse the mathematics the more uncertain and speculative are the conclusions we draw therefrom.”

“Growth is an input into the calculation of value. Companies that grow are usually more valuable than companies that don’t.”

“Economic numbers report the past, and corporations observe the present, while the market lives in the future.”

“A lot of people look to hit singles and sacrifice bunts and make small returns. But statistically you are far better off with huge gains because you are going to make mistakes. And if you are playing small ball and you make a few mistakes, you can’t recover.”

“There has always been a considerable number of pathetic dopes who busy themselves examining the last thousand numbers which have appeared on a roulette wheel, in search of such a repeating pattern. Sadly enough, they have usually found it.”

“Sometimes common sense tells us what statistics cannot.”

“Formula for success: rise early, work hard, strike oil.”

“Charlie taught me to think in terms of mental models, not formulas”

“Narratives are persuasive — numbers are grounding.”

“Investing is not a discipline based on absolutes or precise mathematics. There simply aren’t enough data points available to work out the exact odds.”

“The enchantment which some growth companies convey to the stock market lends a premium to their common stocks which is not always justified by the statistical background.”

“Risk is about how we make decisions, and only incidentally about the math that we employ to reach those decisions.”

“Internal rates of return and other mathematical formulas for real estate projections attempt to legitimize the presumption of predictable results.”

“Price is the essential determinant in every investment equation. At some price, every company is a buy; at some price, every company is a hold; and at a still higher price, every company is a sell. We do not really recognize the concept of a value company.”

“Detecting with a high degree of accuracy when the long-term earnings growth of a company has ceased is difficult because no mathematical formula can be applied to determine when the change from growth to maturity or decadence occurs.”

“No mathematical formula or yardstick alone can be relied on for identifying growth stocks or for detecting when their earnings reach maturity.”

“The availability of a quotation for your business interest (stock) should always be an asset to be utilized if desired. If it gets silly enough in either direction, you take advantage of it. Its availability should never be turned into a liability whereby its periodic aberrations, in turn, formulate your judgments.”

“The evaluation of securities and businesses for investment purposes has always involved a mixture of qualitative and quantitative factors.”

“The arithmetic makes it plain that inflation is a far more devastating tax than anything that has been enacted by our legislatures. The inflation tax has a fantastic ability to simply consume capital.”