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.

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

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.

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

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

Why will someone sell you a dollar for 50 cents? Because in the short run, people are irrational on both the optimistic and pessimistic side.

In every analysis you need to isolate what the real assets are and you must not forget to examine the franchise to do business, to review the character and competence of the management and to estimate the outcome if the whole business had to be turned into cash.