(1) Risk - All investment evaluations should begin by measuring risk, especially reputational:

1. Incorporate an appropriate margin of safety

2. Avoid dealing with people of questionable character

3. Insist upon proper compensation for risk assumed

4. Always beware of inflation and interest rate exposures

5. Avoid big mistakes; shun permanent capital loss

(2) Independence - "Only in fairly tales are emperors told they are naked":

1. Objectivity and rationality require independence of thought

2. Remember that just because other people agree or disagree with you doesn't make you right or wrong - the only thing that matters is the correctness of your analysis and judgment

3. Mimicking the herd invites regression to the mean (merely average performance)

(3) Preparation - "The only way to win is to work, work, work, work, and hope to have a few insights":

1. Develop into lifelong self-learner through voracious reading: cultivate curiosity and strive to become a little wiser every day

2. More important than