Favored stocks underperform the market, while out-of-favor companies outperform the market, but the reappraisal often happens slowly, even glacially.

Analysts have always been overly optimistic.

A realistic definition of risk recognizes the potential loss of capital through inflation and taxes, and would include at least the following two factors: The probability that the investment you chose will preserve your capital over the time you intend to invest your funds. The probability the investments you select will outperform alternative investments for this period.

I paraphrase Lord Rothschild: ‘The time to buy is when there's blood on the streets.'

Experience teaches us that when "everyone" comes to the same conclusion, that conclusion is just about always wrong.

If you have good stocks and you really know them, you'll make money if you're patient over three years or more.

We invest in undervalued companies that exhibit strong fundamentals, above-market dividend yields and historic earnings growth, which our analysis indicates will persist. Our strategy is to own strong, fundamentally sound companies and to avoid speculative stocks or potential bankruptcies.