When stocks are attractive, you buy them. Sure, they can go lower. I've bought stocks at $12 that went to $2, but then they later went to $30. You just don't know when you can find the bottom.
And then at the end of the day, the most important thing is how good are you at risk control. Ninety-percent of any great trader is going to be the risk control.
You don't get rewarded for taking risk; you get rewarded for buying cheap assets. And if the assets you bought got pushed up in price simply because they were risky, then you are not going to be rewarded for taking a risk; you are going to be punished for it.
I'd say it's that most people think that very wealthy people take huge risks and that's why they have huge rewards. But the very best on earth are completely obsessed with not losing money. That sounds overly simplistic, but they know that if you lost 50 percent, it takes 100 percent to get even. Most people don't make that math in their head, so it takes years and years. They are obsessed with not losing money.
Men may differ as to the particular form of governmental activity with respect to industry and business, but nearly all are agreed that private enterprise in times such as these cannot be left without assistance and without reasonable safeguards lest it destroy not only itself but also our processes of civilization.
It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong
I’ve learned many things from him [George Soros], but perhaps the most significant is that it’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.
Using volatility as a measure of risk is nuts. Risk to us is 1) the risk of permanent loss of capital, or 2) the risk of inadequate return.
It is not the return on my investment that I am concerned about; it's the return of my investment
Nobody ever lost money taking a profit.
My experience with novice traders is that they trade three to five times too big. They are taking 5 to 10 percent risks on a trade when they should be taking 1 to 2 percent risks. The emotional burden of trading is substantial; on any given day, I could lose millions of dollars. If you personalize these losses, you can’t trade.
Risk management is the most important thing to be well understood. Undertrade, undertrade, undertrade is my second piece of advice. Whatever you think your position ought to be, cut it at least in half.
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.
There is little room for complacency, and it is important to guard against sporadic volatility in financial markets.
Bankers know that history is inflationary and that money is the last thing a wise man will hoard.
I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.
I have a million dollars in the stock market, because if I lose a million dollars, I don't personally care.
The way to build superior long-term returns is through preservation of capital and home runs...When you have tremendous conviction on a trade, you have to go for the jugular. It takes courage to be a pig.
When you see a 'Shark fight' erupt, we aggressively want to understand what we are committing our money toward.
There is a time to make money and a time to not lose money.
There is a close logical connection between the concept of a safety margin and the principle of diversification.
Wealth, in terms of dollars and so forth, could be counted up, because dollars were finite. It doesn't make any difference how many dollars you have-at a certain point you only have dollars. You start with finite, you end with finite.
Asset managers have different approaches, and I don't wish to suggest there is only one way to run money. There are many ways one can attempt to reduce risk, improve performance, lower drawdowns and reduce volatility.
If you need to put your money in a safe and secure place and you want it to earn interest, Treasury bonds are safer than putting it in any bank as a deposit or putting it anywhere else, because they are backed by the full faith and credit of the United States Government.
An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return.
