May & June Monthly Market Quotes from SumZero

• Posted by scheplick
• on June 29th, 2012

Over the course of the month SumZero has collected market quotes for their weekly newsletter. They’ve elected to share their selected quotes with the StockTwits U community. They are meant to engage and educate market enthusiasts. For this edition, we’ve combined the months of May and June into a pièce de résistance of market wisdom.

 

“Warren Buffett attributes his success to Ben Graham’s work, and in a smaller way, it is the same for me and hundreds of people who’ve made it as investors. You read that book and either you get what it’s saying in a snap or you never get it. For me it was so simple and made so much sense, I thought I had died and gone to heaven. It was my ‘road to Damascus’ moment”

-Prem Watsa
Fairfax Financial

 

 

 

“I have had numerous interviews with reporters who called looking for quotes about tech bargains. I always explain that we believe the best values today are in growing companies outside of the technology sector….To these reporters, it defies common sense that stocks that have declined 80 percent or more are not yet ‘values.’ That is a testament to how powerful and unprecedented the technology mania was. Even after such large price declines, most of these stocks are still not cheap.”
-Bill Nygren
Oakmark

 

 

 

“The single biggest advantage a value investor has is not IQ. It’s patience and waiting. Waiting for the right pitch, and waiting for many years for the right pitch.”

-Mohnish Pabrai
Pabrai Investment Funds and Author, The Dhando Investor

 

 

 

 

 

“Risk and uncertainty aren’t the same as loss, but they create the potential for loss when things go wrong. Some of the biggest losses occur when overconfidence regarding predictive ability causes investors to underestimate the range of possibilities, the difficulty of predicting which one will materialize, and the consequences of a surprise.”

“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

 

 

 

“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

 

 

 

 

“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.”  [This one is dear to our hearts at StockTwits U]

-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

 

 

 

 

“I tend to be a pretty slow seller. There’s two reasons I would sell something, let’s start with that: 1) I made a mistake, it was wrong, and that usually involves some sort of character judgment I made about the management, being disappointed in some sort of tainted investing that seems inconsistent with what I wanted to see. Or secondly, and this is a little bit true right now, there are ideas that are just less compelling than a new idea that you might have and you need some money to pay for what you’re buying. Generally speaking, it’s not just a matter of the fact that I don’t like to sell, but actually there’s huge tax efficiencies for Markel for us to be able to buy and hold something for a long period of time.”
-Tom Gayner
Markel

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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