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.

There will be losing years; but if the art of making money is not to lose it, then there should not be substantial losses.

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

One of the dangers about net-net investing is that if you buy a net-net that begins to lose money your net-net goes down and your capacity to be able to make a profit becomes less secure. So the trick is not necessarily to predict what the earnings are going to be but to have a clear conviction that the company isn't going bust and that your margin of safety will remain intact over time.

All we try to do is buy a dollar for 40 cents.

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.

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.