Temperament

The singular trait that separates concentrated value investors from the herd of investors who try their luck on the stock market is temperament. You need to be able to detach yourself from the views of others or the opinions of others.

You need to be able to look at the facts about a business, about an industry, and evaluate a business unaffected by what other people think. That is very difficult for most people. Most people have a herd mentality, which can, under certain circumstances, develop into delusional behaviours.

The ones that have the edge are the ones who really have the temperament to look at a business, look at an industry and not care what the person next to them thinks about it, not care what they read about it in the newspapers, not care what they hear about it on CNBC, not listen to people who say, "This is going to happen," or, "That's going to happen." You have to come to your own conclusions, and you have to do it based on facts that are available.

Human nature desires quick results, there is a peculiar zest in making money quickly. You have to also have the willingness to walk away from things that other people think are very simple. Alot of people don't have that.