17 Timeless Quotes From Some Of The Smartest Minds In Finance | Exploring Markets

17 Timeless Quotes From Some Of The Smartest Minds In Finance

“Basically, price fluctuations have only one significant meaning for the true investor. They provide him with an opportunity to buy wisely when prices fall sharply and to sell wisely when they advance a great deal. At other times he will do better if he forgets about the stock market and pays attention to his dividend returns and to the operating results of his companies.’’ - Ben Graham, Author, Professor, Investor 

“Refusing to join in the errors of the herd—like so much else in investing—requires control over psyche and ego. It’s the hardest thing, but the payoff can be enormous. Mastery over the human side of investing isn’t sufficient for success, but combining it with analytical proficiency can lead to great results.” - Howard Marks, Oaktree 

"We look for a horse with one chance in two of winning and which pays you three to one." - Charlie Munger Chairman, Wesco Financial Corporation

“The whole world is cyclical, and growth and value take turns. It’s the natural order of things. People become value investors after suffering some pain. Often they have lost a good amount of money. They develop a heavy dose of realism and become sensitive to risk.” - Charles “Chuck” Royce, Royce Funds 

“The market is like high school. Everyone wants to be in the popular crowd, but often it’s the humble outcasts who go on to make the most money.” - Barron’s Magazine

“The time to buy is when there is blood in the streets.” - Baron Rothschild, Rothschild Family Banking 

“If you’re limiting yourself to what you experienced, you are going to be in trouble. I studied the Great Depression. I studied the Weimar Republic. I studied important events that didn’t happen to me.” - Ray Dalio, Bridgewater

“We never meet with management. For all of the bad asymmetries of being on the short side, one of the good asymmetries is that we don’t rely on the company. The biggest mistake people make is to be co-opted by management. The CFO will always have an answer for you as to why a certain number that looks odd really is normal, and why some development that looks negative is actually positive.” - Jim Chanos, Kynikos

“Basically, price fluctuations have only one significant meaning for the true investor. They provide him with an opportunity to buy wisely when prices fall sharply and to sell wisely when they advance a great deal. At other times he will do better if he forgets about the stock market and pays attention to his dividend returns and to the operating results of his companies.’’ - Benjamin Graham, Author, Professor, Investor

“I’d say that my investment philosophy is that I don’t take a lot of risk, I look for opportunities with tremendously skewed reward-risk opportunities. Don’t ever let them get into your pocket – that means there’s no reason to leverage substantially. There’s no reason to take substantial amounts of financial risk ever, because you should always be able to find something where you can skew the reward risk relationship so greatly in your favor that you can take a variety of small investments with great reward risk opportunities that should give you minimum draw down pain and maximum upside opportunities.’’ - Paul Tudor Jones, Tudor Investment Corp.

“The investment business is about being confident enough to know that you're right and everyone else is wrong. Yet you have to be humble enough that you recognize when you've made a mistake. Earlier in my career, I think I had the confidence part pretty solid. But the humbleness part I had to learn.’’ - Bill Ackman Pershing Square 

“In the land of the blind the one eyed is king.” - Israel “Izzy” Englander, Millenium Partners LP

“Be willing to make decisions. That’s the most important quality in a good leader. Don’t fall victim to what I call the “ready-aim-aim-aim syndrome.” You must be willing to fire.” - T. Boone Pickens, Founder, Pickens Plan

“Read books are far less valuable than unread ones. The library should contain as much of what you do not know as your financial means, mortgage rates, and the currently tight real-estate market allow you to put there.” - Nassim Nicholas Taleb, Author of The Black Swan and Fooled By Randomness

"Investors repeatedly jump ship on a good strategy just because it hasn't worked so well lately, and, almost invariably, abandon it at precisely the wrong time." - David Dreman, Founder, Dreman Capital Management

“This idea of anticipation is key to investing and to business generally. You can’t wait for an opportunity to become obvious. You have to think, “Here’s what other people and companies have done under certain circumstances. Now, under these new circumstances, how is this management likely to behave?” - Eddie Lampert Founder, ESL Investments

“There is nothing to fear from truth. Being truthful is essential to being an independent thinker and obtaining greater understanding of what is right.” - Ray Dalio Founder, Bridgewater Associates