Quotes on Liquidity

Liquidity does not exist unless someone else is willing to give you cash in exchange for the piece of paper you want to sell.

Volatility matters, because it defines the uncertainty of the price at which an asset will be liquidated.

Liquidity is a concern of the short-term investor and a minor matter for the long-term investor.

The whole institutional structure of the marketplace rests on the assumption that the other side of the trade will always be there; without that assumption, even the gutsiest of market-makers would refuse to stay in business.

Rational investors will part with their cash only when they believe they are properly compensated for the loss of liquidity and the pain of disquietude.

My experience is that when people want to give something away at a ridiculous price because they have to, not because they want to, that's a good time to buy.

Money flows, in effect, can render fundamental analysis futile in the short run, even while creating a compelling longer-term opportunity.

It's liquidity that moves markets.