A: We are in the mid-cap to small-cap range, so we are not required to be necessarily buying the most liquid stocks. We are able to find our best bargains sometimes in stocks that aren't so actively traded. So, we have to be very patient, and we accumulate a stock sometimes over a couple-of-year period. We put an appraisal on each company's stock, and if we can buy it at 60% of that appraisal, then it is a bargain. Sometimes we are buying it at 70% of its appraisal value, and sometimes we can buy it at 50%.

But more importantly, we don't want a stagnant value. If a stock is worth $20 and selling for $10, we want to own it for ten; but five years down the road, we don't want it to be still worth only $20, we want it to be worth $40. Sometimes deep-value investors get into the value trap, buying a deeply depressed stock worth $20 for $10, and five years later it is still worth $20, but the stock is still at $10 or maybe $11 or $12. The value has to be increasing. The intrinsic value has to be going up. And if the price goes to the point when it is at about 90% of its value, that's when we usually sell it, because then it is not a bargain.

We are also not afraid to be overweight in certain sectors compared to the S&P. We were double overweight for the last couple of years in energy and it served us well, from little companies to Exxon-Mobil and a lot of inbetweens like Anadarko Petroleum. But we have very few healthcare companies and no drug stocks, so we are way underweight in that area, and we are way underweight in technology and computers. I would say high tech has the potential for high wreck. We like basic values, basic industries, and easy-to-understand industries.