Phil Town

Is there a way this can lose money?

And we go through basically a four-step process that says, number one, am I capable of understanding this business?

Do I get it down to my bones, right?

Number two, does this business have some sort of protective mechanism

characteristic, something intrinsic to the business that keeps competition away.

Like in a piece of real estate, it's location.

Number three, is this run by people that have integrity?

And number four, am I buying this at a big discount to its real value?

In other words, if I think this thing is worth $100 and I can buy it for $50, I have a very high degree of certainty that I'm going to make money.

So to me, an investment would be like one of our students buys mink coats at garage sales and flea markets.

And she knows that she's looking at a six thousand dollar red fox, politically incorrect mink coat that this person is getting rid of for three hundred dollars.

And she knows she can sell that on eBay in three days for a thousand bucks.

So that's an investment.

That's what we target.

And that's what Ackman's doing.

I'll jump in.

in.

You're right.

Well, you don't know your planning is perfect, and therefore you have to have a big discount on the values that you're purchasing.

Well, a discount can be bad, right?