Loss avoidance must be the cornerstone of your investment philosophy.

Always look for forced urgent selling.

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

We don't deal in absolutes. We deal in probabilities.

Depressions aren't good but the depression mentality is good.

At the worst possible moment, when your fund is down because cheap things have gotten cheaper, you need to have capital, to have clients who will actually love the phone call and-most of the time, if not all the time-add, rather than subtract, capital.

As value investors, our business is to buy bargains that financial market theory says do not exist. We've delivered great returns to our clients for a quarter century-a dollar invested at inception in our largest fund is now worth over 94 dollars, a 20% net compound return. We have achieved this not by incurring high risk as financial theory would suggest, but by deliberately avoiding or hedging the risks that we identified.