David Einhorn Quotes

All sensible investing is value investing

All intelligent investing is value investing - acquiring more that you are paying for. You must value the business in order to value the stock.

It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.

Warren Buffett is famous for talking about the 'intrinsic value' of stocks. But while many people parrot this phrase, few know what it really means.

Just because a stock is down doesn't mean it's a great buy.

The exact details of how you practice value investing will vary investor to investor, but the fundamental principle of scouring the world, looking for dollar bills that you can buy for 50 cents or at some big discount - that is universal to value investing.

The only intelligence investing is value investing...to acquire more than one is paying for.

I've learned there's a big difference between a long-focused value investor and a good short-seller. That difference is psychological and I think it falls into the realm of behavioral finance.

When buying shares, ask yourself, would you buy the whole company?

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.

I think investors ought to focus on making sure that the stock is within their circle of competence, that it's worth a lot more than it's valued at - and once you have those two things, a stop-loss makes no sense.

A rule of thumb is that the best investors focus on losers, and the winners take care of themselves.

We call ourselves 'opportunistic value investors.'

I try to buy shares of unpopular companies when they look like road kill and sell them when they've been polished up a bit.

While I take no pleasure in others' misfortunes, we've historically made most of our profits from other investors behaving in a panicked and irrational fashion and selling us certain stocks at prices far below their intrinsic value. More volatility equals cheaper stocks, which equals higher returns.

You're looking for a mispriced gamble. That's what investing is. And you have to know enough to know whether the gamble is mispriced. That's value investing.

We have usually made our best purchases when apprehensions about some macro event were at a peak. Fear is the foe of the faddist, but the friend of the fundamentalist.

The investment game always involves considering both quality and price, and the trick is to get more quality than you pay for in price. It's just that simple.

The critical investment factor is determining the intrinsic value of a business and paying a fair or bargain price.

To have a true investment, there must be a true margin of safety. And a true margin of safety is one that can be demonstrated by figures, by persuasive reasoning, and by reference to a body of actual experience.

Warren Buffett has said many times that people either get value investing in five minutes or they won't get it in five years. So, there is something in the human brain, that for some of us, makes all the difference in the world right away and the patience it requires is part of the wiring process.

The entire pursuit of value investing requires you to see where the crowd is wrong so that you can profit from their misperceptions.

If you buy something because it's undervalued, then you have to think about selling it when it approaches your calculation of its intrinsic value. That's hard. But if you buy a few great companies, then you can sit on your ass. That's a good thing.

The late 90s almost forced me to identify myself as a value investor, because I thought what everybody else was doing was insane.

When investing, pessimism is your friend, euphoria the enemy.