Chanda Kochhar Quotes

You know, when the cost of capital goes down, when credit becomes cheap, people start taking greater and greater risks.

Investors have few spare tires left. Think of the image of a car on a bumpy road to an uncertain destination that has already used up its spare tire. The cash reserves of people have been eaten up by the recent market volatility.

Manchester United and Liverpool have been bought with huge leverage, and we've got Roman Abramovich at Chelsea who can turn his loans into shares. It is really important for the Premier League to ask itself: if a club is being bought on such a mountain of debt, isn't that a possible recipe for disaster for the future?

To Wall Street, a firm like BP isn't just a profitable energy company with lots of assets like oil rigs and pipelines and gas stations - it's also a corporation that routinely borrows hundreds of millions of dollars to keep its business up and running.

Big banks have long had private equity divisions that put up capital for deals too complex or risky for individual shareholders to finance.

Increasingly, the real estate developers can't get bank loans for their project financing in China. They're now going into the Hong Kong market to raise money in the bond market at very, very high rates, as high as 15, 20 percent.

If I'm a bank, and I'm making risky loans, I have an incentive, if I can, to make those loans using other people's money: in other words, to make highly leveraged loans.

Producers are not gamblers. They want a good return on their investment.

American capitalists, enthralled by the doctrines of finance, have put their income statements in service of the balance sheet.

You can make great money in a utility type of business by borrowing cheaply and lending sensibly but that's not what's being done.

There’s nothing like doing things with OPM—Other People’s Money. It takes the risk out of it.

Large credit guarantees also impede optimal allocation of financial resources and increase moral hazard.

The actions of hedge fund managers in exercising their fiduciary responsibilities to their investors is not the reason why Chrysler is in jeopardy.

The economic costs of starting your own business can be significant; in fact, most new startup companies fail because of undercapitalization.

The cost of building large airships can be prohibitive. The entry barrier is considerable and could be a show-stopper for large-scale projects.

If you look at Apple... They are sitting on hundreds of billions of dollars in cash, and they go out and borrow money against their overseas bank accounts. This makes no sense.

That is, many times we're not risking our own money, we're risking somebody else's money, or maybe that someone is going to back stop or downside, but we still get the upside.

Even after I had just done Twilight, which made $400 million at the worldwide box office, I could not get financing for three or four projects that I really loved and I thought people would love because they didn't fit some studio or investor's model of thinking, "This will definitely make money." It's a business and a film does potentially cost millions of dollars, and they have to think that they're going to get their money back somehow.

The most important word in the world of money is cash flow. The second most important word is leverage.

Where you want to be is always in control, never wishing, always trading, and always first and foremost protecting your ass. That's why most people lose money as individual investors or traders because they're not focusing on losing money. They need to focus on the money that they have at risk and how much capital is at risk in any single investment they have. If everyone spent 90 percent of their time on that, not 90 percent of the time on pie-in-the-sky ideas on how much money they're going to make, then they will be incredibly successful investors.

The chief losses to investors come from the purchase of low-quality securities at times of favorable business conditions.

It is a mistake to think that one limits one’s risk by spreading too much between enterprises about which one knows little and has no reason for special confidence.

Markets can remain irrational longer than you can remain solvent.

Risk managers and investment bankers and actually, all kinds of investors took on more risk than they expected. So there was a failure of risk management. There was a failure to recognize how much risk there was in some of these securities that people bought.

It's the investor who is risky, not the investment.