In Kiplinger’s Discovering Value column, Whitney Tilson and John Heins say there are two silver linings that have emerged from the market turmoil. The first is that the unprecedented market volatility might be the signal of a stock market bottom, and once that bottom is reached the market could generate some impressive gains. The second positive is that the downturn in the market has created some excellent long-term buying opportunities, and the columnists/money managers like larger caps like Berkshire Hathaway, McDonald’s, Wal-Mart and small/mid caps that have been hit by lowered earnings expectations and hedge fund selling.

Tilson and Heins conclude by giving an example from Mohnish Pabrai’s Dhandho Investor. Their point is a simple one, but one that is often forgot by investors. They explain that is there is a different between “uncertainty and risk” and just “because a company’s future is highly uncertain doesn’t mean an investment in it is risky. Some of the best potential investments are highly uncertain but have little risk of permanent capital loss”.