Portfolio Management

• Inefficient markets, less analyst coverage => more opportunity
• Own 5-8 securities and know them well

Balance sheet

Cash

• Value cash at a discount: $5 per share of cash might as well be $3
• Or if management is doing good things, good earnings, take it at full value

Companies with a lot of cash:

• Identify if management owns a lot of stock - a company with a high cash per share can be bad if the shareholders don't get that value
• Sell when the company makes a big aquisition - they're comitting to not getting shareholders back the cash