Exercise Humility And Restraint.

My Net Worth Is The Market Value Of Holdings Less The Tax Payable Upon Sale. The Liability Is Just As Real As The Asset Unless The Value Of The Asset Declines (ouch), The Asset Is Given Away (no Comment), Or I Die With It. The Latter Course Of Action Would Appear To At Least Border On A Pyrrhic Victory.

Accounting Consequences Do Not Influence Our Operating Or Capital-allocation Decisions. When Acquisition Costs Are Similar, We Much Prefer To Purchase $2 Of Earnings That Is Not Reportable By Us Under Standard Accounting Principles Than To Purchase $1 Of Earnings That Is Reportable.

Too Often, A Vast Collection Of Possessions Ends Up Possessing Its Owner.

Focus On Return On Equity, Not Earnings Per Share.

There Seems To Be Some Perverse Human Characteristic That Likes To Make Easy Things Difficult.