Something out of the ordinary course of business is taking place that creates an investment opportunity. The list of corporate events that can result in big profits for you runs the gamut—spinoffs, mergers, restructurings, rights offerings, bankruptcies, liquidations, asset sales, distributions.

I wait until an investment idea is so good, it hits me over the head like an anvil.

If you spend your energies looking for and analysing situations not closely followed by other informed investors, your chance of finding bargains greatly increases.

If I plug my estimates into the Magic Formula, and it comes out cheap, that's good.

The more confidence I have in each one of my stock picks, the fewer companies I need to own in my portfolio to feel comfortable.

Look down, not up, when making your initial investment decision. If you don’t lose money, most of the remaining alternatives are good ones.

I don't know too many people that are good at timing the market relative to macro-economic events.