Once you adopt a value-investment strategy, any other investment behavior starts to seem like gambling.

Don't short many stocks. Instead they hedge for tail risk with CDS and options. They are happy to incur illiquidity

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

Ultimately, nothing should be more important to investors than the ability to sleep soundly at night.

Value investing is simple to understand but difficult to implement. Value investors are not supersophisticated analytical wizards who create and apply intricate computer models to find attractive opportunities or assess underlying value. The hard part is discipline, patience, and judgment. Investors need discipline to avoid the many unattractive pitches that are thrown, patience to wait for the right pitch, and judgment to know when it is time to swing.

A simple rule applies: if you don't quickly comprehend what a company is doing, then management probably doesn't either.

Always remembering that we might be wrong, we must contemplate alternatives, concoct hedges, and search vigilantly for validation of our assessments. We always sell when a security's price begins to reflect full value, because we are never sure that our thesis will be precisely correct.