Investing Is a Business ...
Treat it that Way!"If you're in business you either control the money or you control the product, one or the other ... or you'll be taken for a ride!"
(Old Sage Business Advice)
Investments are most intelligent when they are most businesslike! It is amazing to see how many capable businessmen try to operate with complete disregard of all the sound principles through which they have gained success in their own business. Yet every corporate security may best be viewed, in the first instance, as an ownership interest in, or a claim against, a specific business enterprise. And if a person sets out to make profits from security purchases and sales, he is embarking on a business venture of his own, which must be run in accordance with accepted business principles if it is to have a chance of success!  The first and most obvious of these principles is: "Know what you are doing. Know your business!" For the investor this means: Do not try to make "business profits" out of securities - that is, returns in excess of normal interest and dividend income - unless you know as much about security values as you would need to know about the value of merchandise that you proposed to manufacture or deal in. A second business principle is: "Do not let anyone else run your business, unless:
- You can supervise his performance with adequate care and comprehension or
- You have unusually strong reasons for placing implicit confidence in his integrity and ability.
For the investor this rule should determine the conditions under which he will permit someone else to decide what is done with his money. A third business principle is:
"Do not enter upon an operation-that is, services, manufacturing or trading in an item-unless a reliable calculation shows that it has a fair chance to yield a reasonable profit. In particular, keep away from ventures in which you have little to gain and much to lose!" 
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