Misc

  • Ricky Sandler
    • “I’m often asking “What’s the next guy’s thesis?” Why is he going to buy it from us 18 months from now when the stock is up 50%? It’s not just going to be that it’s worth 50% more.  It’s important to imagine the narrative that will make the next investor think it’s a good investment then”
  • John Kenneth Galbraith
    • “There are two kinds of forecasters: those who don’t know, and those who don’t know they don’t know.”
    • “There is nothing reliable to be learned about making money. If there were, study would be intense and everyone with a positive IQ would be rich”
  • Benjamin Franklin
    • “Keep your eyes wide open before marriage, half shut afterwards.”
  • Puggy Pearson
    • “Ain’t only three things to gambling: Knowin’ the 60-40 end of a proposition, money management, and knowin’ yourself”
  • Dennis Gartman
    • “There is never one cockroach”
  • Michael Steinhardt
    • “I defined variant perception as holding a well-founded view that was meaningfully different from market consensus… Understanding market expectation was at least as important as, and often different from, the fundamental knowledge”
  • Steven Crist
    • “The issue is not which horse in the race is the most likely winner, but which horse or horses are offering odds that exceed their actual chances of victory”
    • There is no such thing as “liking” a horse to win a race, only an attractive discrepancy between his chances and his price”
  • Robert Rubin
    • “It’s not that results don’t matter. They do. But judging solely on results is a serious deterrent to taking risks that may be necessary to making the right decision. Simply put, the way decisions are evaluated affects the way decisions are made
  • Kenneth Arrow
    • “Our knowledge of the way things work, in society or in nature, comes trailing clouds of vagueness. Vast ills have followed a belief in certainty”
  • Eric Hoffer
    • “when people are free to do as they please, they usually imitate each other”
  • Leonard H. Courtney
    • “There are three kinds of lies: lies, damn lies, and statistics”
  • Winston Churchill
    • “The empires of the future are the empires of the mind”
  • Charles Darwin
    • “It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change”
  • Michael Mauboussin
    • “When a system becomes complex, a collection of individuals often solves a problem better than an expert. This means that the stock market is likely to be smarter than most people, most of the time”
  • Curtis Faith
    • “One of the mental shortcuts that our brains are programmed to make is that doing what others are doing is safer than doing something different”
  • Jason Zweig
    • “an immediate gain gives you a jolt of dopamine that you cannot get from choosing a delayed reward”
  • Daniel Kahneman
    • “It is much easier to identify a minefield when you observe others wandering into it than when you are about to do so”
  • Ron Rimkus
    • “Many analysts labour under the belief that the game is about getting the cash flows right. It’s not. Alpha is not in your cash-flow estimates. It’s not in your discount rates. And it’s not in your cheap multiples. The game is about our variant perception — our ability to distinguish our perceptions from the market’s and successfully bet when there is a material difference. Divergence between your perception and that of the market is where you should dedicate the lion’s share of your work. This is where true alpha comes from. Everything else is beta in disguise.”
  • Frank Zappa (Interview)
    • Interviewer: So I guess your long hair makes you a woman?
    • Zappa: So I guess your wooden leg makes you a table?
  • Wayne Gretzky
    • A good hockey player plays where the puck is. A great hockey player plays where the puck is going to be
    • I skate to where the puck is going to be, not where it has been
    • You miss 100% of the shots you don’t take
  • Amos Tversky
    • “The secret to doing good research is always to be a little underemployed. You waste years by not being able to waste hours.”
  • Sir Isaac Newton
    • “I can calculate the movement of stars, but not the madness of men”
  • Ben Graham
    • “Even the intelligent investor is likely to need considerable willpower to keep from following the crowd. For indeed, the investor’s chief problem, and even his worst enemy, is likely to be himself. Individuals who cannot master their emotions are ill-suited to profit from the investment process”
    • “You can get in way more trouble with a good idea than a bad idea, because you forget that the good idea has limits.”
    • “You’re neither right nor wrong because other people agree with you. You’re right because your facts are right and your reasoning is right—and that’s the only thing that makes you right. And if your facts and reasoning are right, you don’t have to worry about anybody else.”

    • “Chief losses to investors come from the purchase of low-quality securities at times of favorable business conditions. The purchasers view the current good earnings as equivalent to “earning power” and assume that prosperity is synonymous with safety”
    • “Unfortunately in this kind of work, where you are trying to determine relationships based upon past behaviour, the almost invariable experience is that by the time you have had a long enough period to give you sufficient confidence in your form of measurement, just then new conditions supersede and the measurement is no longer dependable for the future.”
    • “The function of the margin of safety is, in essence, that of rendering unnecessary an accurate estimate of the future.”
  • Chuck Prince (former CEO of Citigroup)
    • “As long as the music’s playing, you’ve got to get up and dance, and we’re still dancing”
      • Said one month before the global collapse
  • Mohnish Pabrai
    • “I have a friend who ran what used to be a highly successful IT Services firm. The revenues of this firm went from zero to $10 million to $50 million to eventually over $200 million. Then the music stopped and revenues started falling – eventually falling to well under $50 million. He lamented that when he hit $50 million the first time, he clearly recalls his overhead headcount to run the business. When he hit $50 million on the way down, his corporate headcount was 50% more than it was when he was growing superfast. People have a way of justifying their jobs. Managers are reluctant to let people go”
    • “Inaction and patience are very important traits, but they need to be coupled with decisiveness and willingness to act in size. So it’s an unusual kind of trait to have someone who’s happy watching the paint dry; but then when all the ducks line up, you swing hard…. The key is if you’re not convinced you’re looking at a no-brainer, take a pass.”
    • “Charlie Munger says that he wants to shoot fish in a barrel, but only after all the water has been let out…. When I look at the people that I would normally think of as very good investors, basically, those folks are really good investors but they aren’t fishing where the fish are. And it doesn’t matter how good of a fisherman you are if you’re not fishing where the fish are.”
    • “Heads I win, tails I don’t lose much”
  • Geoff Gannon
    • “I consider any stock that makes up less than 10% of my portfolio to be a distraction. When I look at a distraction, I ask myself a simple question. Would I rather have 20% of my portfolio in this stock or 0% of my portfolio in this stock? And then, I either buy more to get the stock up to 20%. Or (much more likely) I eliminate the position entirely.”
  • Mike Tyson
    • “Everyone has a plan ‘till they get punched in the mouth”
  • James Sinegal (founder of Costco)
    • “A typical retailer might look at this hot dog and say ‘Gee, I’m charging five bucks for this. I wonder if I can get five and a quarter for it’. We look at it and say: it’s US$1.50 and is there any way we can reduce this price?”
  • Oscar Wilde
    • “I can resist anything except temptation”
  • Willa Cather
    • “There are some things you learn best in calm, and some in a store”
  • Jack Ma
    • “If the customers are happy, and the employees are happy, the shareholders will be happy.”
  • Sam Goldwyn
    • “A verbal contract isn’t worth the paper it’s written on”
  • William James
    • “The art of being wise is the art of knowing what to overlook”
  • Richard Branson
    • “You don’t learn to walk by following rules. You learn by doing, and by falling over.”
    • “My attitude has always been, if you fall flat on your face, at least you’re moving forward. All you have to do is get back up and try again.”
    • “Fun is one of the most important – and underrated – ingredients in any successful venture. If you’re not having fun, then it’s probably time to call it quits and try something else.”
    • “By putting the employee first, the customer effectively comes first by default, and in the end, the shareholder comes first by default as well.”
    • “One thing is certain in business. You and everyone around you will make mistakes.”
    • “Like getting into a bleeding competition with a blood bank.”
    • “I believe in benevolent dictatorship provided I am the dictator.”
  • Steve Jobs
    • Great things in business are never done by one person. They’re done by a team of people.
    • You can’t connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future. You have to trust in something – your gut, destiny, life, karma, whatever. This approach has never let me down, and it has made all the difference in my life.
    • Sometimes life hits you in the head with a brick. Don’t lose faith.
    • Creativity is just connecting things. When you ask creative people how they did something, they feel a little guilty because they didn’t really do it, they just saw something. It seemed obvious to them after a while. That’s because they were able to connect experiences they’ve had and synthesize new things.
    • For the past 33 years, I have looked in the mirror every morning and asked myself: ‘If today were the last day of my life, would I want to do what I am about to do today?’ And whenever the answer has been ‘No’ for too many days in a row, I know I need to change something.
    • That’s been one of my mantras – focus and simplicity. Simple can be harder than complex: You have to work hard to get your thinking clean to make it simple. But it’s worth it in the end because once you get there, you can move mountains.
    • Sometimes when you innovate, you make mistakes. It is best to admit them quickly, and get on with improving your other innovations.
    • A lot of people in our industry haven’t had very diverse experiences. So they don’t have enough dots to connect, and they end up with very linear solutions without a broad perspective on the problem. The broader one’s understanding of the human experience, the better design we will have.
    • Older people sit down and ask, ‘What is it?’ but the boy asks, ‘What can I do with it?”
    • Things don’t have to change the world to be important.
  • Dwight Eisenhower
    • “The most urgent decisions are rarely the most important ones.”
  • Joel Tillinghast
    • “I’m still trying to learn from my mistakes. I saw a sign in Orlando 25 years ago that said “Bungee Jumping! Perfect safety record. $80.” Down the street was a sign that said “Bungee Jumping! $40.” As a value investor, I still don’t know which was best.”
  • Jeremy Grantham
    • As this crisis climaxes, formerly reasonable people will start to predict the end of the world, armed with plenty of terrifying and accurate data that will serve to reinforce the wisdom of caution
    • As this crisis climaxes, formerly reasonable people will start to predict the end of the world, armed with plenty of terrifying and accurate data that will serve to reinforce the wisdom of caution
    • Finally, be aware that the market does not turn when market participants begin to see light at the end of the tunnel. It turns when all looks black, but just a subtle shade less black than the day before.
  • Friedrich Nietzsche
    • “Madness is rare in individuals – but in groups, parties, nations, and ages it is the rule”
  • Richard Thaler
    • The most common mistake investors make is not thinking about everybody else. Look at the Internet stocks. Everybody thought they alone discovered the Internet. They failed to realize that lots of people had the same insight yesterday and had already bid prices up to ridiculous levels
    • Loss aversion isn’t as great if you take a long enough view. However, the chance for losing money on a quarterly basis is quite high. Losing hurts. It’s an instinct. It probably goes back to living at subsistence levels. When you’re at subsistence, any reduction is life-threatening. Most of us can afford to lose a little. But our bodies are still hardwired to be very sensitive to any loss.
    • I tell people that a good way of asking whether you should keep a stock—ignoring tax considerations—is whether you’d be willing to buy it. If we would never dream of buying it at the current price, then, again, neglecting taxes for the moment, we probably should be selling it.
    • Anchoring can cause investors to think things haven’t changed when they have. Anchors are useful, but people end up giving too much weight to the anchor and not going far enough from it.
    • When you think in terms of overall wealth, as Bernoulli suggested, you have a different take on risk. Gains become less exciting, and losses are less painful. Every bump doesn’t become an earthquake. You’ll play again another day.
  • Jeff Gundlach
    • “If you’re waiting for the catalyst to show itself, you’re going to be selling at lower prices.”
  • Richard Feynman
    • “Don’t fool yourself, and remember you are the easiest person to fool.”
  • Elroy Dimson
    • “Risk means more things can happen than will happen.”
  • Baron Rothschild
    • “The time to buy is when there’s blood in the streets”
  • Phil Birnbaum
    • “You gain more by not being stupid than you do by being smart. Smart gets
      neutralized by other smart people. Stupid does not.”
  • Robert Kirby
    • “As a money manager, I have frequently looked at an investment decision that I felt had a high probability of success on a three-year horizon, but about which I had many doubts on a six-month time horizon. Institutional investing, as it is structured today, simply makes it more difficult to make a high-conviction, long-term decision than to make a low-conviction, short-term decision”
  • Stanley Druckenmiller
    • George Soros has a philosophy that I have also adopted: The way to build long-term returns is through preservation of capital and home runs.
  • Peter Lynch
    • In centuries past, people hearing the rooster crow as the sun came up decided that the crowing caused the sunrise. It sounds silly now, but every day the experts confuse cause and effect on Wall Street in offering some new explanation for why the market goes up: hemlines are up, a certain conference wins the Super Bowl, the Japanese are unhappy, a trendline has been broken, Republicans will win the election, stocks are “oversold,” etc. When I hear theories like these, I always remember the rooster.
  • Jim Rogers
    • “I just wait until there is money lying in the corner, and then I walk over and pick it up.”
  • George S. Patton
    • If everyone is thinking alike, then somebody isn’t thinking
  • George Soros
    • “If investing is entertaining, if you’re having fun, you’re probably not making any money. Good investing is boring.”
  • Carl Icahn
    • “Some people get rich studying artificial intelligence. Me, I make money studying natural stupidity”
    • “I look at companies as businesses, while Wall Street analysts look for quarterly earnings performance. I buy assets and potential productivity. Wall Street buys earnings, so they miss a lot of things that I see in certain situations.”
    • “In risk there is reward…”
    • “Ideas comes to you… not necessarily working and sitting at a desk…”