Peter Cundill Quotes

The price earning multiple must be less than ten or the inverse of the long term corporate bond rate, whichever is the less.

To my knowledge there are no good records that have been built by institutions run by committee. In almost all cases the great records are the product of individuals, perhaps working together, but always within a clearly defined framework. Their names are on the door and they are quite visible to the investing public. In reality outstanding records are made by dictators, hopefully benevolent, but nonetheless dictators.

The share price must be less than book value. Preferably it will be less than net working capital less long term debt.

There will be losing years; but if the art of making money is not to lose it, then there should not be substantial losses.

The company must be profitable. Preferably it will have increased its earnings for the past five years and there will have been no deficits over that period.

Sooner or later, the market will do what it has to do to prove the majority wrong.

Curiosity is the engine of civilisation

I think that intelligent forecasting (company revenues, earnings, etc.) should not seek to predict what will in fact happen in the future. Its purpose ought to be to illuminate the road, to point out obstacles and potential pitfalls and so assist management to tailor events and to bend them in a desired direction. Forecasting should be used as a device to put both problems and opportunities into perspective. It is a management tool, but it can never be a substitute for strategy, nor should it ever be used as the primary basis for portfolio investment decisions.

The company must be paying dividends. Preferably the dividend will have been increasing and have been paid for some time.

To put money into anything, anywhere, provided that the downside is measurable and acceptable and the chances of a good profit appear to be better than 50%. I will not take gambles, but it is part of my job description to be ready to take very carefully calculated risks.

Try to pick a fund manager who has a well-defined strategy, has been through these things before, and go invest and stay with him.

There is always something to do. You just need to look harder, be creative and a little flexible.