Rule 3 – Use good judgment


  • Trust our own judgment and experience. Instead of over-relying on quantitative measures like IRRs, consider such factors as the number of bidders and how quickly buyers must perform.
  • Apply an appropriate margin of safety depending on the expected investment horizon. The shorter the intended hold period, the greater margin of safety should be built into the purchase price.
  • Sell when the time is right: “when everyone is buying, accommodate them.”