Trying to Reduce Risk? Buy More Securities Owning Absurdly Cheap Things

Investing in Quality Businesses to Limit Exposure

We think our way of investing lowers risk dramatically. If you invest only in quality businesses that generally aren’t exposed to external shocks – like union actions or a lot of cyclicality – that are growing 8 10% per year and earning 10% current returns, you don’t ever really dig yourself any big holes.