1 Never hold fewer than 10 different securities covering five different fields of business.

#2 At least once in six months reappraise every security held.

#3 Keep at least half the total fund in income-producing securities.

#4 Consider yield the least important factor in analyzing any stock.

#5 Be quick to take losses, reluctant to take profits.

#6 Never put more than 25% of a given fund into securities about which detailed information is not readily and regularly available.

#7 Avoid "inside information" as you would the plague.

#8 Seek facts diligently, advice never.

#9 Ignore mechanical formulas for valuing securities.

#10 When stocks are high, money rates rising, business prosperous, at least half a given fund should be placed in short-term bonds.

#11 Borrow money sparingly and only when stocks are low, money rates are low or falling, and business depressed.

#12 Set aside a moderate proportion of available funds for the purchase of long-term options on promising companies whenever available.