Daniel Bakalarz

Investors should always keep in mind that the most important metric is not the returnsachieved but the returns weighed against the risks incurred. Ultimately, nothing should be moreimportant to investors than the ability to sleep soundly at night.

The way to wealth is to be exceptionally good at something. If you are thebest at whatever it may be, people are going to pay you well and thatvalue can’t be destroyed by inflation. Nobody can take away your talent.

Executives must be aware that making investments that create value may be insufficient to  sustain the stock price if the market’s expectations are for either a larger amount of investment or a higher return on investment.

If a company earns exactly its cost of capital on its investments, the present value of incremental NOPAT and  the present value of investment will be equal. SVA and PVGO are both zero.

My friend and fellow value investor, Chris Browne, President of Tweedy Browne,describes what value investors do by telling this story. He was interviewing a new trader andafter the interview, walked them through the Tweedy Browne offices. At the elevator on theirway out, the trader commented, “At other Wall Street firms, just by walking through the... See more

I’ve always basically believed that values  are only useful if you can legitimately disagree with them. I’ve always thought values like “be honest,” are not that  helpful, because of course you have to be honest.

On life:“All right, what are the things that are most important in  life?” They’re health, loving family and friends, and something you’re excited about. What did you do to help someone  today? We basically go through each of these things, and it’s like, all right, so health. What did you do to like, make  yourself stronger, more fit today?