Money and Finance
I've posted this quote before, but was reminded of it recently and since it is probably especially relevant today, I thought it was worth posting again.
“If you buy a cheap stock when the market is high, it is a challenge because, if the market being high is followed by a general decline in prices, then for you to make money in your cheap stock, you have to swim against the tide. If you buy when the market is low, and that lowness is going to be corrected by a general inflation, and you buy your cheap stock, then you have the tailwind in your favor….I think it is unrealistic and maybe hubristic to say, “I don’t care about what is going on in the world. I know a cheap stock when I see one.” If you don’t follow the pendulum and understand the cycle, then that implies that you always invest as much money as aggressively. That doesn’t make any sense to me. I have been around too long to think that a good investment is always equally good all the time regardless of the climate.” –Howard Marks
- Ben Graham Quote, And Some Charts
From The Intelligent Investor: The investor’s portfolio of common stocks will represent a small cross-section of that immense and formidable institution known as the stock market. Prudence suggests that he have an adequate idea of stock-market...
- Excerpt From Warren Buffett’s 1957 Partnership Letter
An excerpt from Warren Buffett’s 1957 letter that may be useful to think about in regards to current stock market levels:In last year's letter to partners, I said the following: My view of the general market level is that it is priced above...
- Quotes...
Below are some quotes that I thought were good ones on which to end 2013 and keep in mind as we enter 2014. From Ray Dalio:The biggest mistake investors make is to believe that what happened in the recent past is likely to persist.From Howard Marks:If...
- Howard Marks On Skill-based Value Added
Howard Marks quote from July 2002, but probably just as valid in today’s environment (I also posted this last night on Twitter): “More than ever, I think non-market-derived, skill-based value added – that is, alpha, not beta – will hold the key...
- Seth Klarman On Position Sizing
I posted this a couple of years ago (HERE), but since there seems to be a lot of new readers to the site, I thought maybe it would be good to post again. The quote below is my transcription from one of Klarman’s answers at the Graham & Dodd Breakfast...
Money and Finance
Howard Marks quote
I've posted this quote before, but was reminded of it recently and since it is probably especially relevant today, I thought it was worth posting again.
“If you buy a cheap stock when the market is high, it is a challenge because, if the market being high is followed by a general decline in prices, then for you to make money in your cheap stock, you have to swim against the tide. If you buy when the market is low, and that lowness is going to be corrected by a general inflation, and you buy your cheap stock, then you have the tailwind in your favor….I think it is unrealistic and maybe hubristic to say, “I don’t care about what is going on in the world. I know a cheap stock when I see one.” If you don’t follow the pendulum and understand the cycle, then that implies that you always invest as much money as aggressively. That doesn’t make any sense to me. I have been around too long to think that a good investment is always equally good all the time regardless of the climate.” –Howard Marks
- Ben Graham Quote, And Some Charts
From The Intelligent Investor: The investor’s portfolio of common stocks will represent a small cross-section of that immense and formidable institution known as the stock market. Prudence suggests that he have an adequate idea of stock-market...
- Excerpt From Warren Buffett’s 1957 Partnership Letter
An excerpt from Warren Buffett’s 1957 letter that may be useful to think about in regards to current stock market levels:In last year's letter to partners, I said the following: My view of the general market level is that it is priced above...
- Quotes...
Below are some quotes that I thought were good ones on which to end 2013 and keep in mind as we enter 2014. From Ray Dalio:The biggest mistake investors make is to believe that what happened in the recent past is likely to persist.From Howard Marks:If...
- Howard Marks On Skill-based Value Added
Howard Marks quote from July 2002, but probably just as valid in today’s environment (I also posted this last night on Twitter): “More than ever, I think non-market-derived, skill-based value added – that is, alpha, not beta – will hold the key...
- Seth Klarman On Position Sizing
I posted this a couple of years ago (HERE), but since there seems to be a lot of new readers to the site, I thought maybe it would be good to post again. The quote below is my transcription from one of Klarman’s answers at the Graham & Dodd Breakfast...