The investor with a portfolio of sound stocks should expect their prices to fluctuate

The investor with a portfolio of sound stocks should expect their prices to fluctuate and should

• neither be concerned by sizable declines 
• nor become excited by sizable advances. 

He should always remember that market quotations are there for his convenience,

• either to be taken advantage of or 
• to be ignored. 

He should never 

• buy a stock because it has gone up or 
• sell one because it has gone down. 

He would not be far wrong if this motto read more simply: “Never buy a stock immediately after a substantial rise or sell one immediately after a substantial drop.”

When to Buy? When Not to Buy? It is far from certain that the typical investor should regularly hold off buying until low market levels appear.

It is far from certain that the typical investor should regularly hold off buying until low market levels appear, because

• this may involve a long wait, 
• very likely the loss of income, and 
• the possible missing of investment opportunities. 

On the whole it may be better for the investor to do his stock buying whenever he has money to put in stocks, except when the general market level is much higher than can be justified by well-established standards of value. 

If he wants to be shrewd he can look for the ever-present bargain opportunities in individual securities.

It is far from certain that the typical investor should regularly hold off buying until low market levels appear

It is far from certain that the typical investor should regularly hold off buying until low market levels appear, because

• this may involve a long wait, 
• very likely the loss of income, and 
• the possible missing of investment opportunities. 

On the whole it may be better for the investor to do his stock buying whenever he has money to put in stocks, except when the general market level is much higher than can be justified by well-established standards of value. 

If he wants to be shrewd he can look for the ever-present bargain opportunities in individual securities.