Risk/Reward Ratio Quotes

A great business at a fair price is superior to a fair business at a great price.

The trend of the market is up, not down. Shorting stocks puts you against that trend and thus makes it more difficult to make money.

Any time you take a chance you better be sure the rewards are worth the risk because they can put you away just as fast for a ten dollar heist as they can for a million dollar job.

I've long loved emerging markets airlines because they usually sell at bargain prices. The troubled history of developed market airlines unfairly taints these stocks. In the emerging world, they're growth stocks.

We take the traditional value investor's process and just flip it around a little bit. The traditional value investor asks 'Is this cheap?' and then 'Why is it cheap?' We start by identifying a reason something might be mispriced, and then if we find a reason why something is likely mispriced, then we make a determination whether it's cheap.

When you look at dividend returns on equities versus bond yields, to me it's a pretty easy decision to be heavily in equities.

What you pay for an investment is the single biggest determinant for how successful that investment will be. When equity prices are high, your returns will be lower. When they are cheap, your returns will be higher.

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

Look, for some players, pot odds should guide your decision making.

I generally disagree with most of the very high margin opportunities. Why? Because it's a business strategy tradeoff: the lower the margin you take, the faster you grow.

I mean I'm not smarter than the market, but I can recognize a good tape and a bad tape. I recognize when it's right and when it's wrong and that's what my strength is.

Shareholders share in the downside and not necessarily in the upside; that's the whole story.

Blind stealing is not exclusive to late position play. You can steal blinds from any position, and you should!

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.