My experience is that short sellers do far better analysis than long buyers because they have to. The market is biased upward over time-as the saying goes, stocks are for the long run.

It's awful to have a depression, but it's a great thing to have a depression mentality because it means that we are not speculating, we are not living beyond our means, we don't quit our job to take a big risk because we know we might not get another job. There is something stable about a country, a society built on those values.

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

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.

The best protection against risk is knowing what you are doing.

Be indifferent if you lose your short term clients, remember they are your own worst enemy

Having clients with a long-term orientation is crucial. Nothing else is as important to the success of an investment firm.