Sublime

One broad approach is to use superior resources and capabilities to force an outcome skewed toward the interests of the firm, overcoming and outlasting retaliation—we might call this the brute force approach.

Aggressive investments should account for 0 to 30 percent of your total portfolio. A 4 percent position is ideal because if you hit a winner and it goes up by 100 percent, the portfolio goes up by 4 percent. If you pick a dud and it drops by 50 percent, the portfolio goes down by only 2 percent. If the choice is a complete disaster and goes to

The other approach, the one favored by the CEOs in this book and pioneered by Singleton, is quite a bit bolder. This approach features less frequent and much larger repurchases timed to coincide with low stock prices—typically made within very short periods of time, often via tender offers, and occasionally funded

Although Benjamin Graham is best known for his focus on the kind of value investing represented by the category of stocks he described as “bargain issues,” he cautioned, “the aggressive investor must have a considerable knowledge of security values—enough, in fact, to warrant viewing his security operations as equivalent to a business enterprise .