“Down cycles are not fun. But they form the basis for enormous future profitability” FormFunBasesEnormousCyclesProfitability Author:Stephen A. Schwarzman
“When the tide goes out, you get to see who's swimming naked. PIMCO has had its bathing suit on for a long time” LongLong TimeNakedSuitsSwimmingTidesBathingBathing Suits Author:Bill Gross
“A lot of people with high IQs are terrible investors because they've got terrible temperaments. And that is why we say that having a certain kind of temperament is more important than brains. You need to keep raw irrational emotion under control. You need patience and discipline and an ability to take losses and adversity without going crazy. You need an ability to not be driven crazy by extreme success” PeopleNeedsKindImportantCertainLossAbilityEmotionBrainCrazyDisciplineTerribleAdversityExtremesDrivenInvestorsIrrationalTemperamentGoing Crazy Author:Charlie Munger
“In investment management today, everybody wants not only to win, but to have a yearly outcome path that never diverges very much from a standard path except on the upside. Well, that is a very artificial, crazy construct. That's the equivalent in investment management to the custom of binding the feet of Chinese women” WantWellsTodayWinningPathFeetCrazyStandardsManagementInvestmentChineseOutcomesCustomsArtificialConstructsBindingInvestment Management Author:Charlie Munger
“Patience and discipline can make you look foolishly out of touch until they make you look prudent and even prescient” LooksDisciplinePrudent Author:Seth Klarman
“Finding patterns is easy in any kind of data-rich environment; that's what mediocre gamblers do. The key is in determining whether the patterns represent signal or noise” KindEasyRichEnvironmentKeysFindingsPatternsNoiseDataMediocreSignals Author:Nate Silver
“I believe I do much better for the time being by first copying some good things than by working without that foundation” FirstsBelieveI BelieveFoundationGood ThingsCopying Author:Vincent Van Gogh
“The value of a thing sometimes lies not in what one attains with it, but in what one pays for it - what it costs us” SometimesLyingValuesPayCost Author:Friedrich Nietzsche
“Does the logic connect? What are the range of probably outcomes? You want to figure out what those probabilities are and ideally be the House. It's fine to gamble, as long as you're the House. Also, listen to critical feedback, particularly from friends. Generally they will be thinking it but they won't tell you.” ThinkingWantLongDoeHouseFiguresFineLogicCriticalRangeOutcomesProbabilityFeedbackGamble Author:Elon Musk
“A thoughtful investment process contemplates both probability and payoffs and carefully considers where the consensus - as revealed by a price - may be wrong. Even though there are also some important features that make investing different than, say, a casino or the track, the basic idea is the same: you want the positive expected value on your side” WantMayImportantIdeasDifferentValuesProcessSidesInvestmentInvestingTrackExpectedFeaturesThoughtfulContemplatingProbabilityConsensusYour SideCasinosPayoff Author:Michael Mauboussin