Security Analysis : Sixth Edition, Foreword by Warren Buffett: Additional Aspects of Security Analysis. Discrepencies Between Price and Value

one-eighth of each stock holding is switched into bonds. Conversely, whenever a decline in the market reduces the proportion to 15%, bonds are sold and one-third additional of each stock is bought. See address of Laurence G. Tighe, Associate Treasurer of Yale University entitled “Present Day Investment Problems of Endowed Institutions,” delivered on February 14, 1940 before the Trust Division of the American Bankers Association. It was summarized in the
New York Sun
of February 20, 1940.