verily

Verily is an archaic adverb meaning “truly” or “with certainty.” While you might find it in classical literature or a king's decree, you will verily never find it in a company's 10-K report or a serious financial analysis. Its inclusion in this dictionary serves as a critical, if unusual, lesson for every investor: the world of sound investing is built on verifiable facts, sober probabilities, and rigorous analysis, not on flowery promises or emphatic assurances. If a stock promoter, financial guru, or your brother-in-law ever uses a word like “verily” to describe an investment's potential, your first move should be to protect your wallet. True investment opportunities don't need medieval adverbs to prove their worth; their value is found in the numbers.

Investing is the art of managing uncertainty, not the science of finding certainty. The very idea of a “sure thing” is an illusion that has parted countless investors from their capital. A value investor's mindset, as championed by figures like Benjamin Graham and Warren Buffett, is rooted in skepticism and the humble acknowledgment that the future is fundamentally unknowable. We don't say, “This stock will verily go up.” Instead, we say, “Based on its current price and demonstrated earning power, this stock offers a significant Margin of Safety against unforeseen future events.”

The word “verily” implies a guarantee, an absolute truth. This is a dangerous mindset in financial markets.

• Markets are Probabilistic: Successful investing is about tilting the odds in your favor over the long term, not finding a magic crystal ball.
• Black Swan Events: Unpredictable, high-impact events can and do happen. No amount of “verily” can protect a portfolio from reality.
• Emotional Decisions: Words that promise certainty are designed to appeal to our emotions—specifically greed and the fear of missing out (FOMO). Sound investing requires a calm, rational temperament.

Learning to distinguish between the language of sound investment analysis and the language of speculative hype is a crucial skill. “Verily” falls squarely in the latter camp.

If you hear these words in an investment pitch, proceed with extreme caution. They are modern-day versions of “verily,” designed to short-circuit your critical thinking.

• Guaranteed
• Secret formula
• Can't-miss opportunity
• No-risk
• Get rich quick
• Once-in-a-lifetime

Instead of seeking false certainty, a value investor focuses on measurable concepts that build a case for an investment's potential, while always respecting the risk involved.

• What is its Intrinsic Value? An estimate of an asset's true worth, based on its ability to generate cash.
• Does it produce strong Free Cash Flow? The cash a company has left over after paying for its operations and capital expenditures.
• What is its Return on Invested Capital (ROIC)? A measure of how efficiently a company is using its money to generate profits.
• Is the Balance Sheet strong? Looking at metrics like the Debt-to-Equity Ratio to ensure the company isn't overleveraged.

In summary, leave “verily” to the poets. For your portfolio, stick to the language of value, reason, and arithmetic.