People we greatly respect think about this differently, but if even in 2007 we could buy a company like Wrigley at 80 cents on the dollar, we think that's a lot more attractive than holding cash. We were getting a substantial free-cash-flow coupon, a strong balance sheet with net cash, and bottom-line earnings growing at [...]

What tends to happen is that as the market gets more expensive we take on more, less discounted names, and when the market is less expensive, we'll have fewer names trading at bigger discounts. At the market peak in 2007, for example, we held about 40 names in our large-cap portfolio and the overall price-to-value [...]

The high-quality characteristics we look for in companies to own at the right price tend more often to be in large-caps than small-caps. We agree with all the arguments that small-caps may benefit from persistent market imperfections that can lead to them being mispriced which is one reason we like them but the fact is [...]