TLDR:
This chapter argues that the traditional approach to common-stock investment is no longer effective due to increased business instability. The chapter explores three general approaches to investing in common stocks, including investing in growth companies based on their potential for steady growth and profitability. However, caution is needed in identifying these companies and determining a suitable price to pay for their stock. Investors can pursue undervalued common stocks using the margin-of-safety principle to buy individual stocks that are worth more than what they are selling for. The "value to a private investor" criterion is a sound touchstone for discovering true investment opportunities in common stocks.