In the investment business, you must expect to be wrong.

Even when you are right, there are costs and taxes associated with being tactical. When you are wrong, there are opportunity costs.

If you think too-big-to-fail banks are not worthy of investment because of their impossible-to-read balance sheets, well then, don't buy them.

When you buy anything with lots of leverage, it does not require a whole lot to go wrong to lose it all.

What you pay for an investment is the single biggest determinant for how successful that investment will be. When equity prices are high, your returns will be lower. When they are cheap, your returns will be higher.

Any time you speak to people about their posture, you learn about their most recent investment activity. When someone just bought stocks, they tend to be bullish; someone who just sold is bearish.