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Quote by Daisaku Ikeda

“Leadership that exploits and sacrifices young people on the altar of its goals is nothing more than raw, demonic power. Genuine leadership is found in ceaseless efforts to foster young people, to pave the way forward for them.”

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Daisaku Ikeda

Daisaku Ikeda, born on January 2, 1928, is a renowned Japanese educator, philosopher, and writer. He served as the president of the Soka Gakkai and is currently the honorary president. Ikeda is dedicated to promoting peace, education, and cultural activities, making significant contributions to global peace and development. more

“When excesses such as lax lending standards become widespread and persist for some time, people are lulled into a false sense of security, creating an even more dangerous situation. In some cases, excesses migrate beyond regional or national borders, raising the ante for investors and governments. These excesses will eventually end, triggering a crisis at least in proportion to the degree of the excesses. Correlations between asset classes may be surprisingly high when leverage rapidly unwinds.”

“Nowhere does it say that investors should strive to make every last dollar of potential profit; consideration of risk must never take a backseat to return. Conservative positioning entering a crisis is crucial: it enables one to maintain long-term oriented, clear thinking, and to focus on new opportunities while others are distracted or even forced to sell. Portfolio hedges must be in place before a crisis hits. One cannot reliably or affordably increase or replace hedges that are rolling off during a financial crisis.”

“Do not accept principal risk while investing short-term cash: the greedy effort to earn a few extra basis points of yield inevitably leads to the incurrence of greater risk, which increases the likelihood of losses and severe illiquidity at precisely the moment when cash is needed to cover expenses, to meet commitments, or to make compelling long-term investments.”

“The latest trade of a security creates a dangerous illusion that its market price approximates its true value. This mirage is especially dangerous during periods of market exuberance. The concept of "private market value" as an anchor to the proper valuation of a business can also be greatly skewed during ebullient times and should always be considered with a healthy degree of skepticism.”

Should Values Security Dangerous Periods Healthy Degrees Illusion Concepts Trade Skepticism Anchors Mirages Exuberance Valuation True Value

Author:Seth Klarman

“Financial innovation can be highly dangerous, though almost no one will tell you this. New financial products are typically created for sunny days and are almost never stress-tested for stormy weather. Securitization is an area that almost perfectly fits this description; markets for securitized assets such as subprime mortgages completely collapsed in 2008 and have not fully recovered. Ironically, the government is eager to restore the securitization markets back to their pre-collapse stature.”

Government Dangerous Products Fit Areas Stress Innovation Financial Weather Description Assets Collapse Tested Sunny Mortgage Stature Stormy Sunny Day Stormy Weather

Author:Seth Klarman

“Ratings agencies are highly conflicted, unimaginative dupes. They are blissfully unaware of adverse selection and moral hazard. Investors should never trust them.”

Should Moral Agency Investors Selection Rating Hazards Adverse Never Trust Dupes Moral Hazard

Author:Seth Klarman

Quote by Daisaku Ikeda

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