The most treasured asset in investment management is a steady hand at the tiller.

Many investors prefer comfort, chasing what is popular and loved, rather than pursuing what is out of favor. The markets do not reward comfort.

The best investment opportunities are often scary.

Whatever is cheap became cheap by treating us badly in the past, but is priced to deliver superior returns.

Whatever is newly expensive has two attributes: wonderful past returns and, in most cases, lousy future returns.

Diversify. But carve out 10 to 20 percent for the most unloved part of the market: emerging markets value.

History teaches that when valuations are extreme, "mean reversion," a move towards historical norms, is likely. Once value stocks turn, the recovery can be fast and intense.