Fund Quotes - Page 30

• We're just very much a plain-vanilla, long-only investment fund.

  Richard Chandler

  Long, Vanilla, Investment

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• A realistic definition of risk recognizes the potential loss of capital through inflation and taxes, and would include at least the following two factors: The probability that the investment you chose will preserve your capital over the time you intend to invest your funds. The probability the investments you select will outperform alternative investments for this period.

  David Dreman

  Loss, Two, Risk

  David Dreman (1998). “Contrarian Investment Strategies in the Next Generation”, p.324, Simon and Schuster

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• As value investors, our business is to buy bargains that financial market theory says do not exist. We've delivered great returns to our clients for a quarter century-a dollar invested at inception in our largest fund is now worth over 94 dollars, a 20% net compound return. We have achieved this not by incurring high risk as financial theory would suggest, but by deliberately avoiding or hedging the risks that we identified.

  Seth Klarman

  Risk, Return, Clients

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• People think that the art market is about opportunists and hedge-fund managers getting broken art, but what really happened is that there was a new configuration of bourgeois values in the U.S. and an acceptance among the bourgeoisie of contemporary art as an idea. I think that bourgeois people are horrible.

  Liam Gillick

  Art, Acceptance, Thinking

  Source: www.interviewmagazine.com

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• Solidarity is the fundamental idea of European cooperation. If a country feels itself to be militarily threatened and calls for soldiers, weapons and sanctions, then that's what it gets. When governments say they need money from the structural funds to stabilize their economy, that's what they get. But you can't cherry pick solidarity.

  Martin Schulz

  Country, Government, Ideas

  Source: www.spiegel.de

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• LTCM lost money when Russia defaulted on a certain class of bonds, and then they had other investments like on the spread between two different kinds of shares of Royal Dutch Shell Oil Company. Now that seems completely unrelated to Russian bonds. But they were related because other hedge funds saw similar discrepancies and they were all making similar bets.

  Richard Thaler

  Russia, Class, Two

  "Big Think Interview With Richard Thaler". bigthink.com. June 19, 2009.

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• Maybe you'll take the cash out. So a credit card company or a bank that goes into the business of saying we're going to be the broker, we're going to sell you a mortgage that you're going to be able to pay off, we're going to help you reduce your credit card debt, we're going to help you save for retirement, we're going to put you into mutual funds that have low fees rather than high fees.

  Richard Thaler

  Retirement, Credit, Debt

  Source: bigthink.com

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• I think a lot of funds get their ideas from Wall Street. I just like to find my own ideas. I read a lot. A lot of news. I just follow my nose. A lot of times it's a dead end, but sometimes there's value there.

  Michael Burry

  Wall, Thinking, Ideas

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• I didn't offer transparency. I provided one quarterly report in letter form. That was all you got. I basically demanded that if you're going to invest in my fund you need to accept my terms. The terms not being super highs, but just, I'm not going to cater to you.

  Michael Burry

  Needs, Letters, Accepting

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• Look at those hedge funds - you think they can wait? They don't know how to wait! I have sat for years at a time with $10 to $12 million in treasuries or municipals, just waiting, waiting...As Jesse Livermore said, 'The big money is not in the buying and selling...but in the waiting.'

  Charlie Munger

  Thinking, Years, Waiting

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• An irresistable footnote: in 1971, pension fund managers invested a record 122% of net funds available in equities - at full prices they couldn't buy enough of them. In 1974, after the bottom had fallen out, they committed a then record low of 21% to stocks.

  Warren Buffett

  Records, Enough, Lows

  Chairman's Letter to the Shareholders of Berkshire Hathaway Inc., www.berkshirehathaway.com. 1978.

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• Beware leverage in all its forms. Borrowers - individual, corporate, or government - should always match fund their liabilities against the duration of their assets. Borrowers must always remember that capital markets can be extremely fickle, and that it is never safe to assume a maturing loan can be rolled over. Even if you are unleveraged, the leverage employed by others can drive dramatic price and valuation swings; sudden unavailability of leverage in the economy may trigger an economic downturn.

  Seth Klarman

  Government, Swings, Fickle

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• At the worst possible moment, when your fund is down because cheap things have gotten cheaper, you need to have capital, to have clients who will actually love the phone call and-most of the time, if not all the time-add, rather than subtract, capital.

  Seth Klarman

  Phones, Add, Needs

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• If mutual fund directors are independent, then I'm the lead character in the Bolshoi Ballet.

  Charlie Munger

  Character, Independent, Ballet

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• I've heard that one-half of the students at elite schools want to go into private equity or hedge funds. They want to keep up with their age cohorts at Goldman. This can't possibly end well in terms of meeting these expectations.

  Charlie Munger

  School, Expectations, Age

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• Our standard prescription for the know-nothing investor with a long-term time horizon is a no-load index fund. I think that works better than relying on your stock broker. The people who are telling you to do something else are all being paid by commissions or fees. The result is that while index fund investing is becoming more and more popular, by and large it's not the individual investors that are doing it. It's the institutions.

  Charlie Munger

  Thinking, Long, People

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• The hedge fund known as "Long Term Capital Management" collapsed last fall through overconfidence in its highly leveraged methods, despite I.Q.'s of its principals that must have averaged 160. Smart people aren't exempt from professional disasters from overconfidence. Often, they just run aground in the more difficult voyages they choose, relying on their self-appraisals that they have superior talents and methods.

  Charlie Munger

  Running, Smart, Fall

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• When we were young, there weren't very many smart people in the investment world. You should have seen the people in the bank trust departments. Now, there are armies of smart people at private investment funds, etc . If there were a crisis now, there would be a lot more people with a lot of money ready to take advantage.

  Charlie Munger

  Smart, Army, Should Have

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• Save 3-6 months of expenses in a Rainy Day fund. Know why? Cause it is going to rain, and you aren't the exception.

  Dave Ramsey

  Rain, Causes, Months

  Twitter post from Nov 09, 2015

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• The institution of taxation is not a civilized but a barbaric method to fund anything, because it amounts to nothing less than outright extortion, a gross violation of human liberty.

  Tibor R. Machan

  Liberty, Taxation, Institutions

  "What's Wrong with Taxation?". mises.org. November 22, 2002.

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• We need laws written by people who have confronted life in the real world, not in the sheltered world of trust fund recipients of the insulated cocoon of academia.

  Thomas Sowell

  Real, Law, People

  Thomas Sowell (2011). “Dismantling America and Other Controversial Essays (Large Print 16pt)”, p.134, ReadHowYouWant.com

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• The growing inequality of wealth and income distribution is both a moral and economic problem. If the wealthy are unwilling to pay more taxes, then this is going to lead to spending cuts. And if you put off the table things like national defense, then you're going to end up cutting more and more out of programs that aid the poor. So, I think there are consequences to this idea that tolerance for inequality requires us to - to just do nothing to make the wealthy contribute a higher share of resources to fund the government.

  Bruce Bartlett

  Cutting, Thinking, Ideas

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• It's my guess that something like 5% of GDP goes to money management and itsattendant friction. I define it broadly - annuities, incentive pay, all trading, etc. Nobody else has used figures that high, but that's my guess. Worst of all, the people doing this are among the best and the brightest. Hundreds and thousands of engineers, etc. are going into hedge funds and investment banking. That is not an intelligent allocation of the brainpower of the civilization.

  Charlie Munger

  Intelligent, Gdp, Civilization

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• Mutual funds charge 2% per year and then brokers switch people between funds, costing another 3-4 percentage points. The poor guy in the general public is getting a terrible product from the professionals. I think it's disgusting. It's much better to be part of a system that delivers value to the people who buy the product. But if it makes money, we tend to do it in this country.

  Charlie Munger

  Country, Thinking, Years

  Charlie Munger's comments on business and investing topics at the 2004 Berkshire Hathaway Annual Meeting, www.tilsonfunds.com. May 1, 2004.

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• The normal expectancy of the average investor - for example, the pension funds of AT&T or IBM - is 6% for a long time.

  Charlie Munger

  Average, Long, Example

  Charlie Munger's comments on future returns from equities at the 2001 Wesco Financial Annual Meeting, www.tilsonfunds.com. May 2, 2001.

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