The price earning multiple must be less than ten or the inverse of the long term corporate bond rate, whichever is the less.

The price earning multiple must be less than ten or the inverse of the long term corporate bond rate, whichever is the less.

To my knowledge there are no good records that have been built by institutions run by committee. In almost all cases the great records are the product of individuals, perhaps working together, but always within a clearly defined framework. Their names are on the door and they are quite visible to the investing public. In reality outstanding records are made by dictators, hopefully benevolent, but nonetheless dictators.

Why will someone sell you a dollar for 50 cents? Because in the short run, people are irrational on both the optimistic and pessimistic side.

I bought stuff at 3.5 cents once and I thought it can’t go down to zero. It can.

What differentiates us from other money managers with a similar style is that we’re comfortable with new lows.

One of the dangers about net-net investing is that if you buy a net-net that begins to lose money your net-net goes down and your capacity to be able to make a profit becomes less secure. So the trick is not necessarily to predict what the earnings are going to be but to have a clear conviction that the company isn't going bust and that your margin of safety will remain intact over time.