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“Some parents were awful back then and are awful still. The process of raising you didn't turn them into grown-ups. Parents who were clearly imperfect can be helpful to you. As you were trying to grow up despite their fumbling efforts, you had to develop skills and tolerances other kids missed out on. Some of the strongest people I know grew up taking care of inept, invalid, or psychotic parents--but they know the parents weren't normal, healthy, or whole.”

“The big picture is: the main thing you should be concerned about in the future are incremental returns on capital going forward. As it turns out, past history of a good return on capital is a good proxy for this but obviously not foolproof. I think this is an area where thoughtful analysis can add value to any simple ranking/screening strategy such as the magic formula. When doing in depth analysis of companies, I care very much about long term earnings power, not necessarily so much about the volatility of that earnings power but about my certainty of "normal" earnings power over time.”