Ratings agencies are highly conflicted, unimaginative dupes. They are blissfully unaware of adverse selection and moral hazard. Investors should never trust them.

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.

Avoiding where others go wrong is an important step in achieving investment success. In fact, it almost assures it.

Ratings agencies are highly conflicted, unimaginative dupes. They are blissfully unaware of adverse selection and moral hazard. Investors should never trust them.

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

One must understand the importance of an endless drive to get information and seek value.

The real secret to investing is that there is no secret to investing.