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.

Sooner or later, the market will do what it has to do to prove the majority wrong.

There is almost always a major blip for whatever reason and we have learnt to expect it and not to panic.

If it is cheap enough, we don't care what it is.

I try to keep in mind Oscar Wilde's comment that "saints always have a past and sinners always have a future," so no investment should be ruled out simply on the basis of past history. We focus on liquidation analysis and liquidation analysis alone.

You find bargains among the unpopular things, the things that everybody hates. The key is that you must have patience.

Protect the downside. Worry about the margin of safety.