As value investors we never place stop-loss orders.  While stop-loss orders can be an effective tool to minimize the downside once a stock is purchased, it is a strategy that a value investor cannot abide by.  A value investor believes that the stock market is inefficient.  Using careful fundamental research, a value investor can capitalize on assets that the market misprices and then patiently waits until the asset returns to fair value.  By using a stop-loss order, an investor allows the market to determine what the value of your investment is worth.  According to noted value investor Seth Klarman, “Instead of taking advantage of market dips to increase one’s holdings, a user of stop losses acts as if the market knows the merits of your investment better than you