The Intelligent Investor

Since our book is not addressed to speculators,

The wisdom god, Woden, went out to the king of the trolls, got
him in an armlock, and demanded to know of him how order
might triumph over chaos. “Give me your left eye,” said the troll,
“and I’ll tell you.” Without hesitation, Woden gave up his left
eye. “Now tell me.” The troll said, “The secret is, ‘Watch with
both eyes!’ ”
—John Gardner

It is easy in the world to live after the world’s opinion; it is easy in solitude to live after our own; but the great man is he who in
the midst of the crowd keeps with perfect sweetness the inde-
pendence of solitude.
—Ralph Waldo Emerson

rise in interest rates on first-grade bonds

What Has Happened Since 1964

component should carry a fair degree of protection against a loss of purchasing power caused by large-scale inflation

Investment versus Speculation

reduce his common-stock component to 25%

his simplest choice would be to maintain a 50–50 proportion between the two,

high-grade bonds and leading common stocks;