Tell Me Your Heroes And I'll Tell

The Three Most Important Words In Investing...margin Of Safety.

First, Many In Wall Street - A Community In Which Quality Control Is Not Prized - Will Sell Investors Anything They Will Buy.

Long Ago, Sir Isaac Newton Gave Us Three Laws Of Motion, Which Were The Work Of Genius. But Sir Isaac's Talents Didn't Extend To Investing: He Lost A Bundle In The South Sea Bubble, Explaining Later, 'i Can Calculate The Movement Of The Stars, But Not The Madness Of Men.' If He Had Not Been Traumatized By This Loss, Sir Isaac Might Well Have Gone On To Discover The Fourth Law Of Motion: For Investors As A Whole, Returns Decrease As Motion Increases.

The Fundamental Basis Of Above-average Performance In The Long Run Is Sustainable Competitive Advantage.

The Greater The Potential For Reward In The Value Portfolio, The Less Risk There Is.