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

I’m lucky to have the kind of life where the differentiation between work and play is absolutely zilch. I have no idea whether I’m working or whether I’m playing.

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

Protect the downside. Worry about the margin of safety.

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

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.

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