Pressure to produce over the short term - a gun to the head of everyone - encourages excessive risk taking which manifests itself in several ways - fully invested posture at all times, the use of leverage, and a market centric orientation that makes it difficult to stand apart from the crowd and take a long term perspective.

Value investors should completely exit a security by the time it reaches full value; owning overvalued securities is the realm of speculators.

Value investing by its very nature is contrarian.

Do not suffer interim losses, relish and appreciate them

When you buy bargains and they become better bargains, it is easy to start to question yourself, which can impair your judgement. Real or imagined concerns about client redemptions, employee defections can greatly influence behavior away from rational.

Having clients with a long-term orientation is crucial. Nothing else is as important to the success of an investment firm.

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