Speculators are obsessed with predicting: guessing the direction of stock prices. Every morning on cable television, every afternoon on the stock market report, every weekend in Barron's, every week in dozens of market newsletters, and whenever business people get together. In reality, no one knows what the market will do; trying to predict it is a waste of time, and investing based upon that prediction is a purely speculative undertaking.

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

As Buffett has often observed, value investing is not a concept that can be learned and gradually applied over time. It is either absorbed and adopted at once, or it is never truly learned.

The prevailing view has been that the market will earn a high rate of return if the holding period is long enough, but entry point is what really matters.

There are only a few things investors can do to counteract risk: diversify adequately, hedge when appropriate, and invest with a margin of safety. It is a precisely because we do not and cannot know all the risks of an investment that we strive to invest at a discount. The bargain element helps to provide a cushion for when things go wrong.

When people give away stocks based on forced selling or fear that is usually a great opportunity.

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