1. Do not base your purchase of a share solely on the stock market. If the business consistently has high earnings, eventually the stock market will catch up. 
   1. Look for consumer monopolies with great management. 

2. The initial rate of return is per share earnings divided by the price per share. 
   1. Example per share earnings= $0.46 and the stock price = $3.80 0.46/3.80 = .121. Initial rate of return is 12.1%.

3. Consider the price of the stock carefully because that affects your rate of return. 
   1. Warren looks for a rate of return greater than 15%. At the time the book was written the national average for companies was 12%. 

4. Stay motivated by long term because:
   1. Long term investments show the magic of compounding annual growth rates of return. Each year your initial rate of return will be expanded by the annual compounding growth return.
   2. Leaving your money in the company can help you avoid taxes on dividends. 

5. A downturn in a company (such as the effects of COVID-19) can be a great time to invest:
   1. Invest in companies you trust will recover, because they probably will recover.

6. Choose a few companies, do your research and stick with them forever. 

Criticism for Low Income:

-This book requires a $200 calculator for the calculations section.