“As a result of overdiversification, their (active managers) returns get watered down. Diversification covers up ignorance. Active managers haven't done enough research into any of their companies. If managers have 200 positions, do you think they know what's going on at any one of those companies at this moment?” IfsThinkingKnowsDoneEnoughMomentsResultsCompanyHavensPositionIgnoranceReturnResearchInvestingActiveManagersCover UpsDiversification Author:Bill Ackman
“I think a very good system in a world with a lot of passive investors is one in which there are at least a few entrepreneurial investors, prepared to say what they think, prepared to propose a change in management, change in strategy, change in cost structure, capital structure.” ThinkingWorldCostManagementStrategyStructurePreparedVery GoodInvestorsPassiveProposeEntrepreneurial Author:Bill Ackman
“Experience is making mistakes and learning from them.” MistakeMaking MistakesMistakes And LearningMaking Mistakes And Learning From Them Author:Bill Ackman
“I'm not emotional about investments. Investing is something where you have to be purely rational and not let emotion affect your decision making - just the facts.” FactsDecisionEmotionEmotionalInvestmentInvestingRationalDecision Making Author:Bill Ackman
“Herbalife: the customers are fictitious, the business opportunity is a scam, the university degree is a fraud.” OpportunityDegreesUniversityCustomersFraudScamsBusiness OpportunityUniversity DegreesHerbalife Author:Bill Ackman
“If you look at the great frauds of all time, Enron had that phantom trading floor. What Herbalife has is it has phantom or fictitious customers.” IfsLooksCustomersAll TimeFraudTradingPhantomsEnronHerbalifeTrading Floor Author:Bill Ackman
“Investing is a business where you can look very silly for a long period of time before you are proven right.” LooksLongPeriodsInvestingSillyProvenLong Periods Of Time Author:Bill Ackman
“It is a certainty that Herbalife is a pyramid scheme. We believe it's harming a population of low-income, principally Hispanic people in the U.S. to benefit a handful of super wealthy people at the top of the pyramid.” PeopleBelieveBenefitsLowsPopulationIncomeCertaintyWealthySchemesHandfulPyramidsHispanicLow IncomePyramid SchemesHerbalife Author:Bill Ackman
“If you think of the typical Herbalife distributor and their level of sophistication, to this day I still don't understand the marketing plan - true story.” IfsThinkingStillsStoriesLevelsPlansMarketingThis DayTypicalTrue StorySophisticationDistributorsMarketing PlansHerbalife Author:Bill Ackman
“Short-term market and economic prognostication is largely a fool’s errand, we invest according to a strategy that makes the need to rely on short-term market or economic assessments largely irrelevant.” NeedsTermEconomicFoolStrategyRelyIrrelevantShort TermAssessmentErrandsPrognostication Author:Bill Ackman
“If I believe that I am right, I will take it to the end of the earth until I am proven right.” IfsBelieveEndsEarthI BelieveProven Author:Bill Ackman
“In order to be successful, you have to make sure that being rejected doesn’t bother you at all.” OrderSuccessfulBotherBeing SuccessfulRejected Author:Bill Ackman
“I am always prepared to do the right thing regardless of what other people think.” PeopleThinkingPreparedRight Thing Author:Bill Ackman
