While appearing theoretically sound and fundamentally safe, option trading strategies such as Covered Calls posses the same shortcomings as other short-term market timing activities.
Fundamental truths and core principles of investing don't change. Only their application evolves with time, say famed value investor Warren Buffett and his mentor Benjamin Graham.
John Clifton "Jack" Bogle — founder and former chief executive of The Vanguard Group — gives five simple principles for Investing at the World Affairs Council of Philadelphia event in 1997.
Followers of Benjamin Graham — such as Warren Buffett — often benefit from the cognitive biases of the average investor, and the systemic inefficiencies of the general market.
The Sales and Assets criteria for company size in the Value Investing framework of Benjamin Graham — Warren Buffett's mentor — need to be adjusted using the Consumer Price Index.
The Value Investing framework of Benjamin Graham — Warren Buffett's mentor — uses a combination of the Price-to-Earnings and Price-To-Book ratios, giving more comprehensive insight than either ratio used alone.