It turns out that value investing is something that is in your blood. There are people who just don't have the patience and discipline to do it, and there are people who do. So it leads me to think it's genetic.

Investors should pay attention not only to whether but also to why current holdings are undervalued. It is critical to know why you have made an investment and to sell when the reason for owning it no longer applies. Look for investments with catalysts that may assist directly in the realization of underlying value. Give reference to companies having good managements with a personal financial stake in the business. Finally, diversify your holdings and hedge when it is financially attractive to do so.

Do not suffer interim losses, relish and appreciate them

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

While it might seem that anyone can be a value investor, the essential characteristics of this type of investor-patience, discipline, and risk aversion-may well be genetically determined.

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

The overwhelming majority of people are comfortable with consensus, but successful investors tend to have a contrarian bent.