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Quote by David Dreman

“A good starting point [in the measurement of investment risk] is the preservation and enhancement of your purchasing power in real terms.”

Quote by David Dreman

Author

David Dreman is a renowned investor, born in 1936. He has over 50 years of experience in the investment field and is known for his unique value investment philosophy. Dreman's investment philosophy emphasizes in-depth research of companies and long-term investment, advocating for the identification of undervalued stocks through fundamental analysis. more

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“A realistic definition of risk recognizes the potential loss of capital through inflation and taxes, and would include at least the following two factors: The probability that the investment you chose will preserve your capital over the time you intend to invest your funds. The probability the investments you select will outperform alternative investments for this period.”

Two Loss Risk Periods Taxes Investment Definitions Following Factors Alternatives Preserves Fund Realistic Probability Inflation Select

Book:Contrarian Investment Strategies in the Next Generation

Source: Contrarian Investment Strategies in the Next Generation

“The qualitative factors upon which most stress is laid are the nature of the business and the character of the management. These elements are exceedingly important, but they are also exceedingly difficult to deal with intelligently.”

Important Character Difficult Deals Elements Stress Management Factors Qualitative

Book:Security Analysis: The Classic 1934 Edition

Source: Security Analysis: The Classic 1934 Edition

“As value investors, our business is to buy bargains that financial market theory says do not exist. We've delivered great returns to our clients for a quarter century-a dollar invested at inception in our largest fund is now worth over 94 dollars, a 20% net compound return. We have achieved this not by incurring high risk as financial theory would suggest, but by deliberately avoiding or hedging the risks that we identified.”

Values Risk Century Theory Return Dollars Financial Fund Investors Quarters Clients Avoiding Bargains Compounds Financial Markets Inception High Risk Incurring Hedging

Author:Seth Klarman

“Credit is money of the mind.”

Author:James Grant

“The model I like to sort of simplify the notion of what goes on in a market for common stocks is the pari-mutuel system at the racetrack. If you stop to think about it, a pari-mutuel system is a market. Everybody goes there and bets and the odds change based on what's bet. That's what happens in the stock market.”

Ifs Thinking Happens Common Goes On Models Notion Odds Simplify

Author:Charlie Munger

“With a profession such as investing, people see the 'doing' as the buying and selling. It is difficult to come home from work, and answer your spouse's question, 'what did you do today?' with 'well, I read a lot, and I talked a little.' If you're not buying or selling, you may feel you aren't doing anything.”

People Ifs Feels Wells May Littles Home Today Difficult Answers Investing Profession Selling Buying Coming Home Spouse Buying And Selling

Author:Dave Abrams

“The only way to test a hypothesis is to look for all the information that disagrees with it.”

Way Looks Information Tests Disagree Hypothesis

Author:Karl Popper

“Costs and liabilities are rarely overstated.”

Author:Seth Klarman

“An investor who proposes to ignore near-term market fluctuations needs greater resources for safety and must not operate on so large a scale, if at all, with borrowed money.”

Ifs Needs Term Greater Resources Safety Scales Investors Propose Borrowed Fluctuation Borrowed Money

Book:General Theory Of Employment , Interest And Money

Source: General Theory Of Employment , Interest And Money

“It's not bringing in the new ideas that's so hard; it's getting rid of the old ones.”

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Author:John Maynard Keynes