Gold is a logical alternative for those worried about governments' ability to manage their finances. If western political leaders adopt practices which result in devalued currencies, large budget deficits and rising inflation, gold to us represents a pretty decent store of value relative to currency alternatives.
Humor is an important part of our culture. That's not to say we're cutting up all the time or that we're even that funny, but in a deadly serious business like ours if you can't find humor in what you're doing, it's going to kill you. Having a sense of the absurd eases tension and [...]
Our not letting single positions get to more than 5 percent of the portfolio is a function of having seen the stocks of too many good companies fall off a cliff as a result of something out of left field. One example I like to use is when Merck announced it was pulling Vioxx off [...]
I'm still more back-of-the-envelope when it comes to valuation. To me it all comes down to the assumptions you're making. If they're correct, a back-of-the-envelope calculation works perfectly well. If they're not, sophisticated modeling isn't going to help.
It’s much easier to find large-cap stocks that are out-of-favor they’re on the front page of The Wall Street Journal and the folks at CNBC are all over them. But in addition to looking for what others don’t like, we also look for what is relatively neglected, which are almost always smaller to mid-cap names. [...]
It's important to remember as a contrarian investor that the consensus is often right. My colleague François Sicart likes to say, “Just because everyone says it's raining outside is no reason not to take an umbrella.” But because we believe the consensus is priced into any given investment, going along with that is a very [...]