Quotes

Volatility is often a symptom of risk but is not a risk in and of itself. Volatility obscures the future but does not necessarily determine the future.

Risk means the chance of being wrong -- not always in an adverse direction, but always in a direction different from what we expected.

It is not the market that is rising or falling at any moment, even if we commonly speak as though it were. In truth, prices move in response to the buying and selling decisions of countless investors, who are constantly considering the likely decisions of countless others.

Risk management means protecting oneself from the adverse and unexpected decisions others may make and, in the process, making better decisions than they do.

What's comfortable is not the right way to invest. You must own things that you're uncomfortable with. Otherwise you're not really diversified.

The analysis of security values is not an abstruse science. While in essence mathematical, it does not soar into the realms of calculus -- in fact, it rarely gets as far as algebra.

If you’re investing with a long time horizon, having an equity bias makes sense; stocks go up in the long run.

The underlying driving force behind market timing decisions seems to be emotional -- fear, greed, chasing performance -- buying something after it has gone up, disappointment, and sales after something has declined.

The opportunity’s greatest where assets are least efficiently priced.

If you talk to a businessman, a businessman is going to feed the winners and kill the losers. But in the investment world, when you've got a winner you should be suspicious about what's next. And if you've got a loser, you should be hopeful -- although not naively hopeful.

The mutual fund industry is not an investment management industry. It's a marketing industry.

With a casual attempt to beat the market, you're going to fail.