1. I prefer to look at specific investments within the inefficient parts of the market.
2. The bulk of opportunities remain in undervalued, smaller, more illiquid situations that often represent average or slightly above-average businesses
3. fully aware that wonderful businesses make wonderful investments only at wonderful prices, I will continue to seek out the bargains amid the refuse.
4. It is likely, however, that the investors in the habit of overturning the most stones will find the most success.
5. My firm opinion is that the best hedge is buying an appropriately safe and cheap stock.
6. It is a tenet of my investment style that, on the subject of common stock investment, maximizing the upside means first and foremost minimizing the downside
7. Lost dollars are simply harder to replace than gained dollars are to lose.
8. The Fund maintains a high degree of concentration - typically 15-25 stocks, or even less. Some or all of these stocks may be relatively illiquid.
9. Volatility does not determine risk.
10. I certainly view volatility as my friend volatility is on sale because 99% of the institutions out there are doing their best to avoid it
11. In essence, the stock market represents three separate categories of business. They are, adjusted for inflation, those with shrinking intrinsic value, those with approximately stable intrinsic value, and those with steadily growing intrinsic value. The preference, always, would be to buy a long-term franchise at a substantial discount from growing intrinsic value.
12. Ick investing means taking a special analytical interest in stocks that inspire a first reaction of “ick.” I tend to become interested in stocks that by their very names or circumstances inspire unwillingness – and an “ick” accompanied by a wrinkle of the nose on the part of most investors to delve any further.
13. One hedges when one is unsure. I do not seek out investments of which I am unsure.
14. I will always choose the dollar bill carrying a wildly fluctuating discount rather than the dollar bill selling for a quite stable premium.
15. With all seriousness, a 2,500-share sell when no one is looking could torpedo the apparent market value of several of the Fund’s holdings.
