There are only a few things investors can do to counteract risk: diversify adequately, hedge when appropriate, and invest with a margin of safety. It is a precisely because we do not and cannot know all the risks of an investment that we strive to invest at a discount. The bargain element helps to provide a cushion for when things go wrong.

Excess capacity in people, machines, or property will be quickly absorbed.

When a stock is selling at a discount to liquidation value per share, a near rock-bottom appraisal, it is frequently an attractive investment.

Most institutional investors feel compelled to swing at almost every pitch and forgo batting selectivity for frequency.

Macro worries are like sports talk radio. Everyone has a good opinion which probably means that none of them are good.

The near absence of bargains works as a reverse indicator for us. When we find there is little worth buying, there is probably much worth selling.

Costs and liabilities are rarely overstated.