“Cash is never a king, especially when people repeat the phrase often.” InvestmentCashTradingMarket CrashCash Is King Author:Naved Abdali
“Markets are not efficient enough to incorporate actual inherent risk, given information bias, and emotionally challenged participants. Instead, prices are adjusted up to the cumulative perceived risk of all participants.” InvestmentInvestingTradingHuman BehaviourTraderActive InvestingEquity Investments Author:Naved Abdali
“The last transaction price is the least accurate measure of the fair value.” InvestmentInvestingTradingHuman BehaviourTraderFair ValueActive InvestingEquity Investments Author:Naved Abdali
“Prices are dominated by the minority, and values are governed by the majority.” InvestmentInvestingTradingHuman BehaviourTraderActive InvestingEquity Investments Author:Naved Abdali
“Most of the traders think and act like gamblers. They believe that they can outsmart the rest of the players with the help of a trading system. They take investing as a game, and daily quotes are their scorecards.” InvestmentInvestingGamblingTradingStock MarketTrading PsychologySharesTrader Author:Naved Abdali
“Traders, as a group, always fall short of investors.” InvestmentInvestingTradingWealth ManagementPortfolioTrader Author:Naved Abdali
“As a group, traders’ net return will always be lower than investors by the amount of transaction cost, plus research expenses.” InvestmentInvestingTradingTrader Author:Naved Abdali
“Annual performance means nothing to individual investors.” InvestmentInvestingInvestorsStocksSharesWealth ManagementMutual FundsPortfolio PerformanceMoney Managers Author:Naved Abdali
“The correct period to judge performance is from a market peak to another peak or at least to the next all-time high.” InvestmentMoney ManagementMarketsStocksSharesWealth ManagementMutual FundsPortfolio Performance Author:Naved Abdali
“Professional money managers are worried about their annual results and may take irrational decisions to protect their performance record. Individual investors have nobody to report, and yearly performance does not mean anything to them.” InvestmentInvestingStocksWealth ManagementMutual FundsPortfolio PerformanceMoney Manager Author:Naved Abdali