For the enterprising investor this means that his operations for profit should be based not on an optimism but on arithmetic.
For every investor it means that when he limits his return to a small figure - as formerly, at least, in a conventional bond or preferred stock - he must demand convincing evidence that he is not risking a substantial part of his principal.
A fourth business rule is more positive:
"Have the courage of your knowledge and experience. If you have formed a conclusion from the facts and if you know your judgment is sound, act on it-even though others may hesitate or differ."
You are neither right nor wrong because the crowddisagrees with you. You are right because your data and reasoning are right!
Similarly, in the world of securities, courage becomes the supreme virtue after adequate knowledge and a tested judgment are at hand.
Fortunately, for the typical investor, to achieve satisfactory investment results is easier than most people realize!
But, to achieve superior results ...
Is much, much harder than it looks!
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