Rule 3 â€“ 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: â€œwhen everyone is buying, accommodate them.â€