Just as many smart people fail in the investment business as stupid ones. Intellectually active people are particularly attracted to elegant concepts, which can have the effect of distracting them from the simpler, more fundamental truths.

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

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

All we try to do is buy a dollar for 40 cents.

They really can’t afford to be contrarians. A major investment house can’t afford to do research for five customers who won’t generate a lot of commissions.

To put money into anything, anywhere, provided that the downside is measurable and acceptable and the chances of a good profit appear to be better than 50%. I will not take gambles, but it is part of my job description to be ready to take very carefully calculated risks.

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