Macheted Francis Chou's flow from his Gurufocus Q&A:
"Immense benefit in buying outstanding companies that does not show up in numbers. There are numerous hidden margins of safety in 1) wonderful economics of the business, 2) great management who know how to allocate capital, 3) growing and sustainable free cash flow that are being deployed wisely, 4) you can make a mistake of paying up and still it may not matter that much because the intrinsic value is growing at a reasonable clip"
"Tobin ratio is the best warning sign of a stock bubble"
"It’s a margin of safety. If the company has too much debt, you buy the bonds instead"
"With redemptions during times of crisis, it can accentuate fund performance negatively. Having large positions of cash makes it less of a jarring experience to investors who maintain their positions as we don’t have to sell off stock to support redemptions"…"A good strategy is having a large cash balance and a fairy godmother who will fund your redemptions."
"My favorite investors are those investors who give me their money and then leave me alone."
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