Li Lu Quotes

If your investing approach requires that you become Nostradamus to succeed, then you are destined to fail.

Investing is about making probabilistic decisions with limited information about an unknowable future. The variables are well known, as are the possible outcomes.

I have no complaints about losing money I put in high-risk investments. I did some of that when I had real money; my informed choice, my measured gamble.

I'm not emotional about investments. Investing is something where you have to be purely rational and not let emotion affect your decision making - just the facts.

In the investment business, you must expect to be wrong.

In markets, there are times when you are looking for what makes sense. At other times, you are looking for what you can do that is sensible versus constraints and uncertainties.

Your job as a smart investor is to separate the facts and the news from the fiction and the noise.

Investing is a probabilistic business. Every once in a while, it's sort of like you're throwing six-sided dice, and anything except a one or a two, you're doing well. Statistically speaking, you throw the dice enough times, you're going to throw a one or a two five times in a row, and you're going to look pretty foolish, right?

Diversification is protection against ignorance. It makes little sense if you know what you are doing.

Investors should start with a view of skepticism. They should become intellectual investors rather than emotional investors. They should be careful, and they should be skeptical.

It is important for investors to understand what they do and don't know. Learn to recognize that you cannot possibly know what is going to happen in the future, and any investment plan that is dependent on accurately forecasting where markets will be next year is doomed to failure.

I have a million dollars in the stock market, because if I lose a million dollars, I don't personally care.

You have a class of investors and you have a class of speculators. The speculators historically haven't been big enough to cause the investors to doubt the long-term vision of stock.

The social object of skilled investment should be to defeat the dark forces of time and ignorance which envelope our future.

Investors should invest on what they know. The biggest mistake is to invest on what they don't know.

Successful investing is anticipating the anticipations of others.

Whenever you try to pick market tops and bottoms, you are making a prediction. Guessing what stock is going to outperform the market is forecasting, as is selling a stock for no apparent reason. Indeed, nearly all capital decisions made by most people are unconscious predictions.

Because in the New Normal you are more worried about the return of your capital, not return on your capital.

You want less of the annoying nonsense that interferes with your portfolios and more of the significant data that allow you to become a less distracted, more purposeful investor.

My investment advice is rooted in my understanding of economics.

I don't really like hedging. To me, if something needs to be hedged, you shouldn't have a position in it.

Investing in a poker game and investing in stocks, at least the way I do it, it's a very similar skillset.

With poker, you have a resolution of the hand within a couple of minutes. Whereas, even if the thought process in investing is very much the same, you're looking at an outcome that could be 2, 3, 4, 5 years from when you make the original decision. And the mindset related to that is very different.

One of the rules I've learned is that struggling to try and think your way into making an investment is usually the best way to not have a great outcome.

Dealing with uncertainty is always a key challenge for investors. But dealing with uncertainty doesn't mean avoiding it - on the contrary, it is often fuzziness about a company's future that creates the type of opportunity bargain-hunting investors cherish.