We mitigate risk primarily at the time of purchase. We attempt to buy at a discount as opposed to chasing shares and paying a premium. As value investors, we seek out-of-favor and temporarily mispriced securities that have already declined in price. If our timing is correct, some of the price risk is taken out of the equation. We also control the amount and/or the percentage of a portfolio invested in any one specific holding. If something goes wrong for one of the businesses, the overall downside risk to the whole portfolio is limited. There are numerous ways to hedge a portfolio. As conditions have warranted, we have utilized a variety of securities and tools that allow us to increase protection against downside risk.