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.

The most important attribute for success in value investing is patience, patience, and more patience. The majority of investors do not possess this characteristic.

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.

The share price must be less than book value. Preferably it will be less than net working capital less long term debt.

Try to pick a fund manager who has a well-defined strategy, has been through these things before, and go invest and stay with him.

The difference between the price we pay for a stock and its liquidation value gives us a margin of safety. This kind of investing is one of the most effective ways of achieving good long term results.

I’m lucky to have the kind of life where the differentiation between work and play is absolutely zilch. I have no idea whether I’m working or whether I’m playing.