Most important, there are no switching costs for consumers.

You have ongoing cash flows (from the milk) and one final, large cash payment, which is the terminal value (the asset value at a distant point in the future, at the petting zoo moment).

Investing is an act of arrogance. You are basically saying, ‘I am right and the person on the other side of the transaction is wrong.’ This arrogance requires amnesia of your past successes and failures; it is earned with your current sweat, through thorough research.

This man goes to the fish market every morning and chooses the best tuna. He doesn’t buy octopus, yellowtail, or any other fish. Just tuna. He knows more about tuna than anyone else alive. I call this quality being a tunaman.

Large financial institutions appear unanalyzable. In fact they are more like highly leveraged hedge funds and, as with hot dogs, you don’t really know what goes into them. Without proper analysis, one cannot assess risk or determine valuation, reducing ownership to speculation.

Statistical cheapness is often easy to see: A company that trades at 7 times last year’s earnings is considered cheap, but it may or may not be undervalued.

When I bought those stocks, I set valuation targets. When they approached the targets, I quickly reviewed their fundamentals. They had not changed much. The decision was obvious: sell.

Value demagoguery starts when value investors read Ben Graham’s Intelligent Investor and the main point they get out of the book is that they need to buy statistically cheap stocks.

Value investing to me is a philosophy that is governed by what I call the Six Commandments of Value Investing.

The vendor essentially co-signs loans for customers lacking investment-grade ratings. Nvidia is in discussions to guarantee roughly $250 billion in lease and debt financing for an OpenAI data center campus.

Volatility can be both a feature and a bug of investing. Value investors attempt to treat it as a feature.