The avoidance of loss is the surest way to ensure a profitable outcome.

We are big fans of fear, and in investing it is clearly better to be scared than sorry.

Always remembering that we might be wrong, we must contemplate alternatives, concoct hedges, and search vigilantly for validation of our assessments. We always sell when a security's price begins to reflect full value, because we are never sure that our thesis will be precisely correct.

When you buy bargains and they become better bargains, it is easy to start to question yourself, which can impair your judgement. Real or imagined concerns about client redemptions, employee defections can greatly influence behavior away from rational.

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.

The cost of performing well in bad times can be relative underperformance in good times.

You probably would not choose to dine at a restaurant whose chef always ate elsewhere. I do eat my own cooking, and I don't "dine out" when it comes to investing.