Peter Cundill Quotes

One of the dangers about net-net investing is that if you buy a net-net that begins to lose money your net-net goes down and your capacity to be able to make a profit becomes less secure. So the trick is not necessarily to predict what the earnings are going to be but to have a clear conviction that the company isn't going bust and that your margin of safety will remain intact over time.

The share price must be less than book value. Preferably it will be less than net working capital less long term debt.

Curiosity is the engine of civilisation

The company must be profitable. Preferably it will have increased its earnings for the past five years and there will have been no deficits over that period.

All we try to do is buy a dollar for 40 cents.

I bought stuff at 3.5 cents once and I thought it can't go down to zero. It can.

Protect the downside. Worry about the margin of safety.

The price must be less than one half of the former high and preferably at or near its all time low.

I try to keep in mind Oscar Wilde's comment that "saints always have a past and sinners always have a future," so no investment should be ruled out simply on the basis of past history. We focus on liquidation analysis and liquidation analysis alone.

I suspect that my thinking is an eclectic mix, not pure net-net because I couldn't do it anyway so you have to have a new something to hang your hat on. But the framework stays the same.

To put money into anything, anywhere, provided that the downside is measurable and acceptable and the chances of a good profit appear to be better than 50%. I will not take gambles, but it is part of my job description to be ready to take very carefully calculated risks.

I'm lucky to have the kind of life where the differentiation between work and play is absolutely zilch. I have no idea whether I'm working or whether I'm playing.

Sooner or later, the market will do what it has to do to prove the majority wrong.

There will be losing years; but if the art of making money is not to lose it, then there should not be substantial losses.

What differentiates us from other money managers with a similar style is that we're comfortable with new lows.

If it is cheap enough, we don't care what it is.

When a stock doubles, sell half - then what you have is a free position. Then it becomes more of an art form. When you sell depends on individual circumstances.

Why will someone sell you a dollar for 50 cents? Because in the short run, people are irrational on both the optimistic and pessimistic side.

There is almost always a major blip for whatever reason and we have learnt to expect it and not to panic.

You find bargains among the unpopular things, the things that everybody hates. The key is that you must have patience.

Just as many smart people fail in the investment business as stupid ones. Intellectually active people are particularly attracted to elegant concepts, which can have the effect of distracting them from the simpler, more fundamental truths.

There is always something to do. You just need to look harder, be creative and a little flexible.

I think that intelligent forecasting (company revenues, earnings, etc.) should not seek to predict what will in fact happen in the future. Its purpose ought to be to illuminate the road, to point out obstacles and potential pitfalls and so assist management to tailor events and to bend them in a desired direction. Forecasting should be used as a device to put both problems and opportunities into perspective. It is a management tool, but it can never be a substitute for strategy, nor should it ever be used as the primary basis for portfolio investment decisions.

To my knowledge there are no good records that have been built by institutions run by committee. In almost all cases the great records are the product of individuals, perhaps working together, but always within a clearly defined framework. Their names are on the door and they are quite visible to the investing public. In reality outstanding records are made by dictators, hopefully benevolent, but nonetheless dictators.

The price earning multiple must be less than ten or the inverse of the long term corporate bond rate, whichever is the less.