- If two companies have the same return on equity, the company that uses more debt is inefficient
- always look for companies that needs very little debt to generate a high return to equity
- look for companies with a highly defensible moat
- a rising tide floats all boats, its only when the tides goes out when we see who is swimming without their pants on
- it is ok to stay in cash when all other positions are over valued
- it is hard to time the ups and downs of a position, thus executing on a buy low and sell high strategy mostly result in high levels of trading cost and lower yield as compared to holding to a position for the long run