Focus on the fundamentals of business that are simple enough to understand.
Downside risk is the key determinant when assessing position-sizing.
Define risk as the probability of permanent loss of capital, not volatility.
In light of this, lower purchase prices can lead to higher returns achieved with less risk.
Diversification is important, but not at the cost of understanding the underlying assets.
Market volatility is welcomed as it tends to exacerbate differences between the intrinsic value of a company and its traded stock price.
Patience and flexibility of mandate are key requirements for sustainable performance.
