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

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

We do liquidation analysis and liquidation analysis only.

The price must be less than one half of the former high and preferably at or near its all time low.

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.

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

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.