If you don't allow for self-serving bias in the conduct of others, you are, again, a fool.

Obviously, consideration of costs is key, including opportunity costs. Of course capital isn't free. It's easy to figure out your cost of borrowing, but theorists went bonkers on the cost of equity capital. They say that if you're generating a 100% return on capital, then you shouldn't invest in something that generates an 80% return on capital. It's crazy.

We have a history when things are really horrible of wading in when no one else will.

See's candy company was the first high-quality business we ever bought.

The stupid and dishonest accountants allowed the genie of totally inappropriate accounting to descend on derivatives books. And once this has happened - people get status, etc. - it's impossible to get it back into the bottle.

There is bound to be a regression toward the mean.

Why should it be easy to do something that, if done well, two or three times, will make your family rich for life?