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

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

Financial innovation can be highly dangerous, though almost no one will tell you this. New financial products are typically created for sunny days and are almost never stress-tested for stormy weather. Securitization is an area that almost perfectly fits this description; markets for securitized assets such as subprime mortgages completely collapsed in 2008 and have not fully recovered. Ironically, the government is eager to restore the securitization markets back to their pre-collapse stature.

The way to maximize outcome is to focus on the process.

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 single greatest edge an investor can have is a long-term orientation.

Loss avoidance must be the cornerstone of your investment philosophy.