Quotes

Plungers normally get their head and their assets handed to them eventually.

Mr. Market grades you on a dialy basis.

The concept that investment risk is less a function of the individual company than the price of its stock is not recognized by many investors.

Growth stock investing may be more a philosophy of buying what is popular. Value investing is more a philosophy of buying what is out of favor.

Money managers are not stupid. They realize that sticking one’s neck out and producing short-term under performance that differs from an index that is used as the benchmark is risky.

If a money manager cannot explain in plain English what their investment principles are, they probably don’t have any. And if they cannot explain their process for finding and researching an investment idea, they probably don’t have that either.

The mantra is patience, patience and more patience. Think long-term and remember that the big rewards accrue with compound annual rates of return.

The reality is that financial markets are self-destabilizing; occasionally they tend toward disequilibrium, not equilibrium.

Risk is when there are multiple possible future states and the probabilities of those different future states occurring are known.

The achievements of natural science stand as convincing testimony to man’s ability to use reason. Unfortunately, these achievements do not ensure that human behavior is always governed by reason.

Market prices of financial assets do not accurately reflect their fundamental value because they do not even aim to do so. Prices reflect market participants’ expectations of future market prices.

Every bubble has two components: an underlying trend that prevails in reality and a misconception relating to that trend.