Risky Assets Quotes

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.

The financial crisis was linked to the fact that banks had excessive leverage and too many risky assets. The solution is not to try to dictate to banks what they can do or not do, but to require them to strengthen their capital to absorb potential losses and hold less risky assets.

There's never been a good period of venture capital when prices weren't high.

The enthusiasm for Tesla and other bubble-basket stocks is reminiscent of the March 2000 dot-com bubble. As was the case then, the bulls rejected conventional valuation methods for a handful of stocks that seemingly could only go up. While we don't know exactly when the bubble will pop, it eventually will.

There is a lot of pain still to be had in the equity markets, particularly aimed at the risky end of the spectrum. We think the fair value on the market is about a third lower in the U.S. . .

Great investments may look crazy but really may not be.

Unlike the 19th century, when real estate and government bonds were the primary form of capital, it is riskier assets that generate most of the wealth in the modern global economy — assets that can more quickly lose value as a result of changes in technology or global competition.

Banks and other financial institutions found that it was often impossible to obtain market prices for mortgage-backed securities and other risky assets. Not knowing the value of their own portfolios, they could not judge the solvency and liquidity of other financial institutions either. As a result, they were unwilling to lend to them, and the financial system ground to a halt.