The company must be paying dividends. Preferably the dividend will have been increasing and have been paid for some time.

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.

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.

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

Curiosity is the engine of civilisation

Long term debt and bank debt (including off-balance sheet financing must be judiciously employed. There must be room to expand the debt position if required.

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.