- Investing is most intelligent when it is business-like. Very simply, we view this principle as suggesting that one should view investments in public companies in the same manner that they could if they were going to buy the entire business.
- Always require a “margin of safety”. We define “margin of safety” as a discount to our
estimate of a company’s intrinsic value sufficient to compensate us as investors for the risks and uncertainties assumed and the capital allocated.
- Maintain the appropriate perspective. Recognize that the market is a mechanism; a vehicle there to facilitate what we might wish to do as investors, but it does not require that we do anything.