naved-abdali Quotes About markets

“The government wants to keep the capital markets healthy and thriving. They will do whatever in their power to avoid or reverse a recession.”

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Author:Naved Abdali

“A modest rate-of-return can accumulate a fortune over time. You don’t need to beat the market, do over-leveraging, or pick the best stock to be rich. You just need to earn a decent rate-of-return and let your money compound overtime.”

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Author:Naved Abdali

“Compounding has a snowball effect. It is just a tiny ball of snow at the very start, but it can turn into an avalanche over time.”

Wealth Investment Markets Stock Shares Portfolio Compounding

Author:Naved Abdali

“A steady upward trajectory is the only logical path for the stock market because shares are proportionate ownerships in profit-making businesses, and over time profit accumulates.”

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Author:Naved Abdali

“Market price matters at only two points in time. When you buy and when you sell. In between, it is only a distraction.”

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Author:Naved Abdali

“You must start investing as early as possible. Yesterday was better than today, and today is better than tomorrow. Don’t wait for a significant market drop.”

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Author:Naved Abdali

“Broad-market indexes like S&P 500 must rise over the long term. The upward path is the only logical direction. Prices can be suppressed for a short period, but eventually, the index will continue its course.”

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Author:Naved Abdali

“Over the long term, and I mean a very long term, markets are efficient.”

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Author:Naved Abdali

“Market prices only matter at two points of time in the investment life cycle. First when you buy and second when you sell. In between these two points, value matters.”

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Author:Naved Abdali

“It is impossible to say whether an asset class valuation is cheap or expensive in isolation. The valuation of an asset is relative to the valuations of all other assets.”

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Author:Naved Abdali

“The number one reason people lose money in investing is because they buy assets without giving any thought whatsoever to the fair value.”

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Author:Naved Abdali

“Market quotes change every second, but business evolves steadily. You have ample time to evaluate a business to buy or not to buy. There is no rush.”

Business Investing Value Markets Invest Valuation Stocks

Author:Naved Abdali

“If you have some working knowledge of business and accounting and have a lot of patience to ride out market ups and downs, you can be a stock picker. You just need to understand that stocks are proportionate ownership of earning businesses.”

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Author:Naved Abdali

“I believe when using leverage, the following four conditions must be met. 1. Leverage must be in the general direction of a secular trend. 2. Leverage should never expire. 3. Leveraged positions should not be subject to forced sell. 4. The maximum possible loss should not be more than the invested capital.”

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Author:Naved Abdali

“Economic conditions may differ from period to period, but human psychology is embedded among us and will not change.”

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Author:Naved Abdali

“Investors need to keep their emotions in check for a successful investment career. It is the most important requirement. It’s even more critical than having access to capital and markets.”

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Author:Naved Abdali

“Greed and fear are in our DNA. We can’t get rid of them, but we can learn how to keep them in check.”

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Author:Naved Abdali

“It may take some time, but capital will eventually flow to the most logical place.”

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Author:Naved Abdali

“Capital must flow from low yield to high yield and from high risk to low risk, everything else being equal.”

Capital Markets Invest

Author:Naved Abdali

“Activities of capital markets do not create or abolish money; governments do.”

Capital Markets Capital Markets

Author:Naved Abdali

“Capital efficiently and frequently flows between bonds and stocks. It pays to keep an eye on yields offered by these markets.”

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Author:Naved Abdali

“The actual risk is the permanent loss of capital or, to a lesser extent, a sub-par return. Temporary volatility in market price is not a real risk.”

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Author:Naved Abdali

“All capital investments inherently suffer the risk of permanent capital loss. As an investor, it is your job to differentiate between market volatility and a permanent capital loss. You can only achieve this when you fundamentally understand why you bought the asset in the first place.”

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Author:Naved Abdali

“Market participants are humans, and so are their behaviors.”

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Author:Naved Abdali

“Humans’ reactions are contaminated with their cognitive biases, greed, fear, and survival instinct. However, capital market success requires precisely the opposite behavior of what your intuition is suggesting.”

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Author:Naved Abdali

“Gold, paintings, or bitcoin are all examples of buying a bigger-idiot type of asset. You can be lucky and find a bigger idiot most of the time, but if you consistently play the same game, once in a while you will be the biggest idiot. You will find yourself holding the bag all the way down to market bottoms.”

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Author:Naved Abdali

“In a bubble, people demonstrate some sort of cult-like behavior. They defend their positions, not by economic logic, but by force. They do this by calling those who disagree with them dirty, and mocking people who give them prudent advice.”

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Author:Naved Abdali

“Excess liquidity is the leading source of all bubbles.”

Bubbles Markets Liquidity Asset Pricing

Author:Naved Abdali

“When enough people believe that prices will keep rising forever, a bubble starts.”

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Author:Naved Abdali

“Bubbles feel like a party.”

Bubbles Markets Investment Psychology Boom

Author:Naved Abdali

“When an economy or market is flushed with excess liquidity, people start to invest in unrealistic possibilities.”

Economy Bubbles Markets Liquidity Asset Pricing

Author:Naved Abdali

“in a rising price environment, party culture and a gambling mindset take over. People think it is easy to make money, and it is fun. The stock market is a big giant casino where the odds are in favor of gamblers. The more you play, the more you win. However, the facts are precisely the opposite.”

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Author:Naved Abdali

“In a rapidly rising market, the stretch of prices between two points of time is amplified, then so is the general public’s behavior towards prices.”

Risk Investing Bubbles Trading Markets Boom Prices

Author:Naved Abdali

“Trading is buying and selling to exploit a change in the price. Investing is acquiring assets for economic reasons.”

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Author:Naved Abdali

“Be realistic about potential market returns, and be aware of possible risks.”

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Author:Naved Abdali

“When you buy a stock, you buy a piece of business, not a quote from a broker. As long as the company is doing good, your investment is safe.”

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Author:Naved Abdali

“Greed pulls people in, and fear pushes them out.”

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Author:Naved Abdali

“It is not essential to know when the market will go down. The important thing is what you do when it does.”

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Author:Naved Abdali

“Investing without a clear understanding of associated risk is like a child is playing with fire. Risk assets are called risk assets for a reason.”

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Author:Naved Abdali

“Liquidity collapse is not the sign of the market bottom. It is instead a sign that the bottom is not far.”

Investing Markets Liquidity Market Crash Market Cycles

Author:Naved Abdali

“Leveraging is not evil but must be used with extreme caution and care. You must understand that over-leveraging is the prime reason for all market blowups.”

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Author:Naved Abdali

“The perceived risk and actual risk are two different things.”

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Author:Naved Abdali

“The advantage of the information-bias in favor of professional money-managers and large investors is almost irrelevant for a long-term investor.”

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Author:Naved Abdali

“If you have a farm and you have a bad year, nobody quotes your farm 50% below its actual intrinsic value. But in stocks, this does happen and happens very often.”

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Author:Naved Abdali

“A trader needs to be highly skilled and extremely lucky to beat the market consistently. If a trader is highly skilled but not lucky enough or extremely lucky but modestly skilled, he will beat the market occasionally but not consistently. Traders that are modestly skilled and modestly lucky will briefly beat the market but will be behind the market most of the time. Everybody else will lose money on a long-term basis, that is, 90% of the traders.”

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Author:Naved Abdali

“Every all-time high of the stock market proves that the market has eventually recovered from all downturns, 100% of the time. This strategy is the only one that worked every time without a single failure for centuries.”

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Author:Naved Abdali

“The stock market, as a whole, has and will recover from every downturn.”

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Author:Naved Abdali

“The concept that must be learned is that the market can and does fall substantially from its top periodically. Date, scale, and reason can and will be different each time.”

Investing Trading Markets Stock Market Portfolio Management

Author:Naved Abdali

“In concentrated portfolios, market fluctuations are magnified. All market noises look like real events.”

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Author:Naved Abdali

“Traders try to beat the market but don’t understand that cumulatively they are the market.”

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Author:Naved Abdali

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