The best way to think about capital allocation is not how much money you make, but how much of what you make you keep. Most people focus on the former and ignore the latter, which is why they stay poor.

The best thing a public company can do with excess cash is repurchase stock when it trades below intrinsic value, but the worst thing is to repurchase stock when it trades above intrinsic value. Most companies do the latter.

The best way to think about capital allocation is not how much money you make, but how much you keep after you've paid taxes, inflation, and the cost of maintaining your standard of living.

The best thing a public company can do is repurchase stock when it's trading below intrinsic value—but the worst thing is to repurchase stock when it's trading above it, which happens far too often because of executive compensation incentives.

The first rule of compounding: Never interrupt it unnecessarily. The second rule of compounding: Never interrupt it unnecessarily.

The best thing a public company can do with cash is buy back stock when it trades below intrinsic value. Everything else is just noise.

The best way to think about capital allocation is not how much money you make, but how much you keep after accounting for the permanent loss of capital. Most investors focus on returns; the best ones obsess over never losing what they've built.

The best way to think about capital allocation is that you're trying to earn the highest return on incremental capital. Most managers think about average returns; the great ones think about marginal returns.