Here's the essence of risk management: Risk no more than you can afford to lose, and also risk enough so that a win is meaningful. If there is no such amount, don't play.

When I started in this business 40 years ago, I spent half my time on research and the other half on things like investment banking. Today I spend half my time on research and the rest hiring analysts.

In takeovers, the metaphor is war. The secret is reserves. You must have reserves stretched way out ahead. You have to know that you could buy the company and not be stretched.

It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong.

In the long run, it's not just how much money you make that will determine your future prosperity. It's how much of that money you put to work by saving it and investing it.

Markets are fundamentally volatile. No way around it. Your prolem is not in the math. There is no math to get you out of having to experience uncertainty.