"Bear markets and bull markets are categories used to simplify. Liquidity conditions may set a direction, but given the right price and the right business, we have made money in all types of conditions. However, the more diversified you become, the more you are letting the market’s gyrations decide the outcome."

"We invest in equity most of the time. It’s through ownership, and the growing value of what we own, that we make the most money. Occasionally, it may be rational to focus on a different aspect of the capital structure: a business that is funded through debt that we can purchase, or debt that can be turned into ownership later. In some respects, this is a detail. What matters most is that our research has created a level of conviction to invest, and invest in size. The way that conviction is implemented can vary from time to time."

"The daily marks on a group of 10 stocks go up and down, but what doesn’t vary as much are the fees. The fixation on fees is remarkable, because it stubbornly ignores the impact of the most reliable fee around: taxes. The complexity of the US tax code hides what should be an open secret: the manager who holds positions for years can often produce a return stream whose tax characteristics are equivalent to the management fee! Why isn’t this talked about more often? Because few managers benefit. You won’t see many marketing decks that discuss the compound impact of a lower tax burden. If other managers had this in their favor, they would scream it from the rooftops."