Great investments don't just knock on the door and say "buy me".

Most institutional investors feel compelled to swing at almost every pitch and forgo batting selectivity for frequency.

The latest trade of a security creates a dangerous illusion that its market price approximates its true value. This mirage is especially dangerous during periods of market exuberance. The concept of "private market value" as an anchor to the proper valuation of a business can also be greatly skewed during ebullient times and should always be considered with a healthy degree of skepticism.

If an asset has cash flow or the likelihood of cash flow in the near term and is not purely dependment on what a future buyer might pay, then it's an investment. If an asset's value is totally dependent on the amount a future buyer might pay, then its purchase is speculation.

Macro worries are like sports talk radio. Everyone has a good opinion which probably means that none of them are good.

The stock market is the story of cycles and of the human behavior that is responsible for overreactions in both directions.

Things that have never happened before are bound to occur with some regularity. You must always be prepared for the unexpected, including sudden, sharp downward swings in markets and the economy. Whatever adverse scenario you can contemplate, reality can be far worse.