Thinking Quotes - Page 27

• Decision-making is difficult because, by its nature, it involves uncertainty. If there was no uncertainty, decisions would be easy! The uncertainty exists because we don't know the future, we don't know if the decision we make will lead to the best possible outcome. Cognitive science has taught us that relying on our gut or intuition often leads to bad decisions, particularly in cases where statistical information is available. Our guts and our brains didn't evolve to deal with probabilistic thinking.

  Daniel Levitin

  Decisions We Make, Taught Us, Brain

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• I can't figure out why anyone invests in active management, so asking me about hedge funds is just an extreme version of the same question. Since I think everything is appropriately priced, my advice would be to avoid high fees. So you can forget about hedge funds.

  Eugene Fama

  Advice, Would Be, Asking

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• Even fans of actively managed funds often concede that most other investors would be better off in index funds. But buoyed by abundant self-confidence, these folks aren't about to give up on actively managed funds themselves. A tad delusional? I think so. Picking the best-performing funds is 'like trying to predict the dice before you roll them down the craps table,' says an investment adviser in Boca Raton, FL. 'I can't do it. The public can't do it.'

  Paul Samuelson

  Giving Up, Self Confidence, Trying

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• The efficient market theory is one of the better models in the sense that it can be taken as true for every purpose I can think of. For investment purposes, there are very few investors that shouldn't behave as if markets are totally efficient.

  Eugene Fama

  Taken, Purpose, Investing

  "A Father of Modern Finance" by Rebecca Rolfes, www.chicagobooth.edu. 2013.

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• Most people might just as well buy a share of the whole market, which pools all the information, than delude themselves into thinking they know something the market doesn't.

  Merton Miller

  People, Investing, Might

  "Investment Gurus: A Road Map to Wealth from the World's Best Money Managers" by Peter J. Tanous, (p. 269), 1999.

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• After a lifetime of picking stocks, I have to admit that Bogle's arguments in favor of the index fund have me thinking of joining him rather than trying to beat him. Bogle's wisdom and common sense are indispensable... for anyone trying to figure out how to invest in this crazy stock market.

  Jim Cramer

  Crazy, Common Sense, Trying

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• I think ethical ambivalence is a kind of innoculation, a way of excusing yourself in advance for something you actually want to do. No offense.

  Jennifer Egan

  Want, Way, Kind

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• The soul is forever being. It is being what it is being, regardless of what the body is doing, not because of what it's doing. If you think your life is about doingness, you do not understand what you are about.

  Neale Donald Walsch

  Inspirational, Religious, Forever

  Neale Donald Walsch (2005). “The Complete Conversations with God: An Uncommon Dialogue”, p.161, Penguin

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• To change your reality, simply stop thinking like that.

  Neale Donald Walsch

  Inspirational, Religious, Reality

  Neale Donald Walsch (2005). “The Complete Conversations with God: An Uncommon Dialogue”, p.168, Penguin

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• In this case, instead of thinking "I want success," think "I have success."

  Neale Donald Walsch

  Inspirational, Religious, Want

  Neale Donald Walsch (2005). “The Complete Conversations with God: An Uncommon Dialogue”, p.168, Penguin

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• People like the robber barons assumed that the doctrine of the survival of the fittest authenticated them as deserving power. You know, "I'm the richest. Therefore, I'm the best. God's in his heaven, etc." And that reaction of the robber barons was so irritating to people that it made it unfashionable to think of an economy as an ecosystem. But the truth is that it is a lot like an ecosystem. And you get many of the same results.

  Charlie Munger

  Ecosystems, People, Heaven

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• Smart tech investor thinks about: a) future product roadmap, b) bottoms-up market size & growth, c) talent and skill of team. Essentially you are valuing things that have not yet happened, and the likelihood of the CEO and team being able to make them happen. Finance people find this appalling, but investors who do this well can make a lot of money.

  Marc Andreessen

  Team, Smart, Skills

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• People who don't like cats always seem to think there is some peculiar virtue in not liking them.

  Lucy Maud Montgomery

  Cat, People, Peculiar

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• I think that, every time you saw the word EBITDA, you should substitute the word "bullshit" earnings.

  Charlie Munger

  Bullshit, Saws, Investing

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• Warren spends 70 hours a week thinking about investing .

  Charlie Munger

  Investing, Week, Hours

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• Basically, we try to buy value expressed in the differential between its price and what we think its worth.

  Walter Schloss

  Trying, Investing, Values

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• I think it would be worse to expect nothing than to be disappointed.

  Lucy Maud Montgomery

  Expectations, Would Be, Expect Nothing

  Lucy Maud Montgomery (2016). “ANNE OF GREEN GABLES - Complete Collection: ALL 14 Books in One Volume (Anne of Green Gables, Anne of Avonlea, Anne of the Island, Rainbow Valley, The Story Girl, Chronicles of Avonlea and more): Including Letters and Autobiography of Lucy Maud Montgomery”, p.80, e-artnow

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• Managements, you know, often think of themselves.

  Walter Schloss

  Investing, Management, Knows

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• How much more the seeker of abstract truth, who needs periods of isolation, and rapt concentration, and almost a going out of thebody to think!

  Ralph Waldo Emerson

  Truth, Thoughtful, Going Out

  Ralph Waldo Emerson (2009). “The Essential Writings of Ralph Waldo Emerson”, p.637, Modern Library

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• Logic is the art of thinking well: the mind, like the body, requires to be trained before it can use its powers in the most advantageous way.

  Henry Home, Lord Kames

  Art, Mind, Use

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• When God works miracles, he does not do it in order to supply the wants of nature, but those of grace. Whoever thinks otherwise, must needs have a very mean notion of the wisdom and power of God.

  Gottfried Leibniz

  Mean, Order, Miracle

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• We get a feeling, if we can, about what we think the company is worth.

  Walter Schloss

  Feelings, Investing, Company

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• Have you ever noticed that when people say it is their duty to tell you a certain thing you may prepare for something disagreeable? Why is it that they never seem to think it a duty to tell you the pleasant things they hear about you?

  Lucy Maud Montgomery

  People, May, Certain

  Lucy Maud Montgomery (2013). “The Anne of Green Gables Chronicles (Annotated Edition)”, p.351, Jazzybee Verlag

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• That what's most relevant to you is whether and how you're doing something different from what everybody else is doing.

  Roger G. Ibbotson

  Independent, Different, Investing

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• Active management strategies demand uninstitutional behavior from institutions, creating a paradox that few can unravel. Establishing and maintaining an unconventional investment profile requires acceptance of uncomfortably idiosyncratic portfolios, which frequently appear downright imprudent in the eyes of conventional wisdom.

  David F. Swensen

  Independent, Eye, Acceptance

  David F. Swensen (2009). “Pioneering Portfolio Management: An Unconventional Approach to Institutional Investment, Fully Revised and Updated”, p.8, Simon and Schuster

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