I like thinking big. I always have. To me it's very simple: if you're going to be thinking anyway, you might as well think big. - Warren Buffett

The greater the potential for reward in the value portfolio, the less risk there is.

How the record has been achieved is crucial, as is the manager’s understanding of — and sensitivity to — risk (which in no way should be measured by beta, the choice of too many academics).

Our aversion to leverage has dampened our returns over the years. But Charlie and I sleep well. Both of us believe it is insane to risk what you have and need in order to obtain what you don’t need. We held this view 50 years ago when we each ran an investment partnership, funded by a few friends and relatives who trusted us. We also hold it today after a million or so “partners” have joined us at Berkshire.