There is no such thing as a value trap. There are investing mistakes.

There is no such thing as a value trap. There are investing mistakes.

Wall Street sometimes gets confused between risk and uncertainty, and you can profit handsomely from that confusion. The low-risk, high-uncertainty [situation] gives us our most sought after coin-toss odds. Heads, I win; tails, I don't lose much.

Basically if you study entrepreneurs, there is a misnomer: People think that entrepreneurs take risk, and they get rewarded because they take risk. In reality entrepreneurs do everything they can to minimize risk. They are not interested in taking risk. They want free lunches and they go after free lunches.

The good news in investing is there are no HR problems. If there are no humans, there are no problems!

The only way one should buy stocks is if you understand the underlying business. You stay within the circle of competence. You buy businesses you understand.

The problem most nonprofits have is that they are run by romantics who are great to hang out with, but they have no clue.