Alleviate Extreme Stresses and Make Rational Decisions
by Seth Klarman
One of our strategies for maintaining rational thinking at all times is to attempt to avoid the extreme stresses that lead to poor decision-making. We have often described our techniques for accomplishing this: willingness to hold cash in the absence of compelling investment opportunity, a strong sell discipline, significant hedging activity, and avoidance of recourse leverage, among others.
Source: http://www.valueinvestorinsight.com/