Graham's wonderful sentence as, an investor needs only two things: cash and courage. Having only one of them is not enough.

Successful investors like stocks better when they’re going down. When you go to a department store or a supermarket, you like to buy merchandise on sale, but it doesn’t work that way in the stock market. In the stock market, people panic when stocks are going down, so they like them less when they should like them more. When prices go down, you shouldn’t panic, but it’s hard to control your emotions when you’re overextended, when you see your net worth drop in half and you worry that you won’t have enough money to pay for your kids’ college.

We don't deal in absolutes. We deal in probabilities.

It is crucial in a sound investment process to search a mile wide than a mile deep with they find something - also.. never stop digging for information.

At Baupost, we constantly ask: 'What should we work on today?' We keep calling and talking. We keep gathering information. You never have perfect information. So you work, work and work. Sometimes we thumb through ValuLine. How you fill your inbox is very important.

Bad things happen, but really bad things do not. Do buy the dips, especially the lowest quality securities when they come under pressure, because declines will quickly be reversed.

Like to have a catalyst - reduces dependence on the market: Distressed debt inherently has a catalyst - maturity.