Protect the downside. Worry about the margin of safety.

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

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

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.

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

There is almost always a major blip for whatever reason and we have learnt to expect it and not to panic.

I think that intelligent forecasting (company revenues, earnings, etc.) should not seek to predict what will in fact happen in the future. Its purpose ought to be to illuminate the road, to point out obstacles and potential pitfalls and so assist management to tailor events and to bend them in a desired direction. Forecasting should be used as a device to put both problems and opportunities into perspective. It is a management tool, but it can never be a substitute for strategy, nor should it ever be used as the primary basis for portfolio investment decisions.