I think Buffett is a better investor than me because he has a better eye toward what makes a great business. And when I find a great business I'm happy to buy it and hold it. Most businesses don't look so great to me.

The risk of an investment is described by both the probability and the potential amount of loss. The risk of an investment-the probability of an adverse outcome-is partly inherent in its very nature. A dollar spent on biotechnology research is a riskier investment than a dollar used to purchase utility equipment. The former has both a greater probability of loss and a greater percentage of the investment at stake.

When a Wall Street analyst or broker expresses optimism, investors must take it with a grain of salt.

Why should the immediate opportunity set be the only one considered, when tomorrow's may well be considerably more fertile than today's?

Value investing by its very nature is contrarian.

It turns out that value investing is something that is in your blood. There are people who just don't have the patience and discipline to do it, and there are people who do. So it leads me to think it's genetic.

If you've just stared into the abyss, quickly forget it: the lessons of history can only hold you back.