Safety first, driving high returns

• Rule number one: Safety First. Don’t lose your money. Priority is ensuring the return OF capital, the return ON capital will follow

• Only with rule number one satisfied: Margin of Safety drives upside

• A steeper discount equals less risk AND higher potential returns

• Attractive fundamentals at a bargain price. Only invest in companies that are worth substantially more than the current price

• Identify weaknesses: can we “kill the business”

• Minimizing errors: our checklist of 75+ items reduces risk and identifies concerns