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.

Curiosity is the engine of civilisation

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

When a stock doubles, sell half - then what you have is a free position. Then it becomes more of an art form. When you sell depends on individual circumstances.

To my knowledge there are no good records that have been built by institutions run by committee. In almost all cases the great records are the product of individuals, perhaps working together, but always within a clearly defined framework. Their names are on the door and they are quite visible to the investing public. In reality outstanding records are made by dictators, hopefully benevolent, but nonetheless dictators.

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.

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