In some corner of the world they are probably still holding regular meetings of the Flat Earth Society. We derive no comfort because important people, vocal people, or great numbers of people agree with us. Nor do we derive comfort if they don't.

Do not take yearly results too seriously. Instead, focus on four or five-year averages.

I want to be able to explain my mistakes. This means I do only the things I completely understand.

We make investment decisions based on our evaluation of the most profitable combination of probabilities.

We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.

The major asset in this category is gold, currently a huge favorite of investors who fear almost all other assets, especially paper money (of whose value, as noted, they are right to be fearful). Gold, however, has two significant shortcomings, being neither of much use nor procreative. True, gold has some industrial and decorative utility, but the demand for these purposes is both limited and incapable of soaking up new production. Meanwhile, if you own one ounce of gold for an eternity, you will still own one ounce at its end.

Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.