By choosing stocks with a substantial difference between price and value, a wide margin of safety is created. The lower the purchase price relative to value, the lower the risk. Contrary to popular belief, by decreasing risk, this method increases potential reward.
The stock market is inherently misleading. Doing what everybody else is doing can often be wrong.
The market has taught me to ignore the market most of the time. Just stick to fundamental investing.
The market has taught me to continually stay the course even though I do believe that prices of businesses in public markets and, maybe, even in private equity, fluctuate and that volatility is much higher than the actual long term value of a business.
We seek to make reasoned decisions, attempt to adjust for natural biases and emotions, and focus on building portfolios one company at a time while seeking an attractive margin of safety.