One time I was having dinner with Charlie, and he mentioned that if an investor did just three things — and I don’t think Charlie’s talked about this publicly — but he said ‘if an investor just did three things, the end results would be vastly better than the rest.’ And he said, ‘one is carefully look at what the other great investors have done.’  And the second thing he said is, ‘look at the cannibals.’ And what he meant by ‘look at the cannibals,’ is look carefully at the businesses that are buying back huge amounts of their stock… And the third is, he said, ‘carefully study spinoffs.’ And so I found it interesting that Charlie basically said that an investment operation that focused on these three attributes would do exceedingly well.”

–  Mohnish Pabrai, reflecting upon a conversation he had with Charlie Munger