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.

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

I suspect that my thinking is an eclectic mix, not pure net-net because I couldn’t do it anyway so you have to have a new something to hang your hat on. But the framework stays the same.

Protect the downside. Worry about the margin of safety.

We always look at the margin of safety in the balance sheet and then worry about the business.

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.

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