Intrinsic value can be defined simply: It is the discounted value of the cash that can be taken out of a business during its remaining life. The calculation of intrinsic value, though, is not so simple. As our definition suggests, intrinsic value is an estimate rather than a precise figure, and it is additionally an estimate that must be changed if interest rates move or forecasts of future cash flows are revised.

I have this complicated procedure I go through every morning, which is to look in the mirror and decide what I'm going to do. And I feel at that point, everybody's had their say.

We do not have, nor have had, and never will have an opinion about where the stock market, interest rates, or business activity will be a year from now.

Our investments continue to be few in number and simple in concept: The truly big investment idea can usually be explained in a short paragraph. We like a business with enduring competitive advantages that is run by able and owner-oriented people. When these attributes exist, and when we can make purchases at sensible prices, it is hard to go wrong (a challenge we periodically manage to overcome).

Knowing the edge of your competency is important. If you think you know more than you do, you will get in trouble.

When we went crazy, and we did go crazy on residential real estate, it set things in motion that just - the dominoes started toppling.

Beware [of] the investment activity that produces applause; the great moves are usually greeted by yawns.