What has worked in investing

Tweedy, Browne Company LCC, a well established value based investment firm and worked as the broker for Warren Buffett with the acquisition of Berkshire Hathaway in the early 1960's

The firm has published a very insightful booklet for prospect investors called :

"WHAT HAS WORKED IN INVESTING - Studies of Investment Approaches and Characteristics Associated with Exceptional Returns"

There are 5 specific points:

1. Low Price in Relation to Asset Value
2. Low Price in Relation to Earnings
3. A Significant Pattern of Purchases by One or More Insiders (Officers and Directors)
4. A Significant Decline in a Stock's Price
5. Small Market Capitalization