My view is that whatever edge I have comes more from knowing where to shop than knowing specifically which of the items I buy will be the best. So I maintain roughly equal stakes to reflect that.

I’m biased more towards industrial and capital-goods businesses, which I find more rational than those that are tied primarily to consumer demand. I’m not much of a consumer myself, so I don’t have a great feel for what makes a lasting consumer business. Why do people like Coach bags? How do you predict the extent [...]

It is hard for us to have an edge in analyzing Microsoft’s or Intel’s business, but we do believe it’s possible through understanding macro trends and market psychology and through the use of a clear valuation discipline to buy even the most widely followed companies when they’re out of favor and sell them when they’re [...]

To me, investing success is 50 percent analytical ability and 50 percent understanding and playing off the market's psychology. We are serious students of macroeconomic influences and trends, and are most interested when industry sectors that should benefit from major demographic, technological, or economic shifts are out of favor.