Value investing is predicated on the efficient market hypothesis being wrong.

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

The government - the ultimate short-term-oriented player - cannot withstand much pain in the economy or the financial markets. Bailouts and rescues are likely to occur, though not with sufficient predictability for investors to comfortably take advantage. The government will take enormous risks in such interventions, especially if the expenses can be conveniently deferred to the future. Some of the price-tag is in the form of back- stops and guarantees, whose cost is almost impossible to determine.

Bad things happen, but really bad things do not. Do buy the dips, especially the lowest quality securities when they come under pressure, because declines will quickly be reversed.

Most investors are primarily oriented toward return, how much they can make and pay little attention to risk, how much they can lose.

Avoiding where others go wrong is an important step in achieving investment success. In fact, it almost assures it.

In investing it is never wrong to change your mind. It is only wrong to change your mind and do nothing about it.