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.

We do liquidation analysis and liquidation analysis only.

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

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

There will be losing years; but if the art of making money is not to lose it, then there should not be substantial losses.

The company must be profitable. Preferably it will have increased its earnings for the past five years and there will have been no deficits over that period.

Protect the downside. Worry about the margin of safety.