As an investor with small capital, one should prefer businesses that have high returns on capital and that require little incremental investment to grow.

The speed at which a business success is recognized, furthermore, is not that important as long as the company's intrinsic value is increasing at a satisfactory rate. In fact, delayed recognition can be an advantage: It may give us the chance to buy more of a good thing at a bargain price.

It is more important to say "no" to an opportunity, than to say "yes".

A great investment opportunity occurs when a marvelous business encounters a one-time huge, but solvable problem.

Basically, the single-most important decision in evaluating a business is pricing power.

The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd.