When management owns stock, then rewarding the shareholders becomes a first priority, whereas when management simply collects a paycheck, then increasing salaries becomes a first priority.

It would be wonderful if we could avoid the setbacks with timely exits, but nobody has figured out how to predict them.

There is always something to worry about. Avoid weekend thinking and ignoring the latest dire predictions of the newscasters. Sell a stock because the company's fundamentals deteriorate, not because the sky is falling.

Searching for companies is like looking for grubs under rocks: if you turn over 10 rocks you'll likely find one grub; if you turn over 20 rocks you'll find two.

That's not to say there's no such thing as an overvalued market, but there's no point worrying about it.

You just don't know when you can find the bottom.

My method for picking stocks has never changed. When businesses go from crappy to semicrappy, there's money to be made.