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.

Long term debt and bank debt (including off-balance sheet financing must be judiciously employed. There must be room to expand the debt position if required.

Just as many smart people fail in the investment business as stupid ones. Intellectually active people are particularly attracted to elegant concepts, which can have the effect of distracting them from the simpler, more fundamental truths.

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

If it is cheap enough, we don't care what it is.

We always look at the margin of safety in the balance sheet and then worry about the business.

Why will someone sell you a dollar for 50 cents? Because in the short run, people are irrational on both the optimistic and pessimistic side.