Bernard Horn

We've purposely avoided basing our bonuses on performance against benchmarks. We're always running into managers who say they're unable to look at certain stocks because they don't fall within a prescribed benchmark. They tell us, “I can't take the risk. If I buy it and it goes down, I'll have to write all sorts of [...]

Bernard Horn

Our discounted-cash-flow calculation then produces two prices. Our buy price is the price at which the cash flows are being discounted to produce our required real return of 8 percent. Basically, the company is priced low enough to allow us to earn in excess of the market's expected return. Our sell price is the one [...]