“My philosophy is that all stocks are bad. There are no good stocks unless they go up in price. If they go down instead, you have to cut your losses fast Letting losses run is the most serious mistake made by most investors.” IfsMadePhilosophyRunningLossMistakeCuttingSeriousEntrepreneurInvestmentInvestingFinancialFinanceInvestorsFoundersYour LossSerious Mistakes Author:William O'Neil
“The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading… I know this will sound like a cliché, but the single most important reason that people lose money in the financial markets is that they don't cut their losses short.” PeopleIfsKnowsImportantReasonWould BeSoundLosesLossCuttingEmotionalKeysDisciplineFinancialMaking MoneyTradingFinancial Markets Author:Victor Sperandeo
“The people who survive avoid snowball scenarios in which bad trades cause them to become emotionally destabilized and make more bad trades. They are also able to feel the pain of losing. If you don't feel the pain of a loss, then you're in the same position as those unfortunate people who have no pain sensors. If they leave their hand on a hot stove, it will burn off. There is no way to survive in the world without pain. Similarly, in the markets, if the losses don't hurt, your financial survival is tenuous.” PeopleIfsWorldWayFeelsHandsAblePainCausesHurtLossPositionSurvivalLosingHotTradeFinancialUnfortunateScenariosNo PainStovesWithout PainSnowballSensors Author:William Eckhardt
“In the financial markets, however, the connection between a marketable security and the underlying business is not as clear-cut. For investors in a marketable security the gain or loss associated with the various outcomes is not totally inherent in the underlying business; it also depends on the price paid, which is established by the marketplace. The view that risk is dependent on both the nature of investments and on their market price is very different from that described by beta.” DifferentLossViewsClearCuttingRiskSecurityDependsGainsConnectionsPaidInvestmentInvestingFinancialVariousOutcomesDependentInvestorsInherentMarketplaceFinancial MarketsBeta Author:Seth Klarman
“Art as an aesthetic principle was supported by thousands of years of discernment and psychic rewards, but art as a commodity was held up by air. The loss of confidence that affected banks and financial instruments was not affecting cherubs, cupids and flattened popes. The objects hadn't changed: what was there before was there after. But a vacancy was created with the clamoring crowds deserted and retrenched.” YearsArtLossPrinciplesAirObjectsChangedInstrumentsRewardsFinancialCrowdsAffectedAestheticPopeCommodityPsychicsDiscernmentDesertedCupidVacancyCherubs Author:Steve Martin
“My single biggest financial concern is the loss of the dollar as the reserve currency. I can't imagine anything more disastrous to our country. . .you're already seeing things in the markets that are suggesting that confidence in the dollar is waning. . .I think you could see a 25% reduction in the standard of living in this country if the U.S. dollar was no longer the world's reserve currency. That's how valuable it is.” IfsThinkingWorldI CanCountryLossImagineSeeingStandardsConcernDollarsFinancialValuableOur CountryCurrencyReservesReductionSuggestingStandards Of Living Author:Sam Zell
“But in the financial markets, without proper institutional rules, there's the law of the jungle - because there's greed! There's nothing wrong with greed, per se. It's not that people are more greedy now than they were 20 years ago. But greed has to be tempered, first, by fear of losses. So if you bail people out, there's less fear. And second, b prudential regulation and supervision to avoid certain excesses.” PeopleIfsYearsFirstsLawCertainLossYears AgoGreedFinancialExcessRegulationGreedyJungleSupervisionFinancial MarketsBail Author:Nouriel Roubini
“In a crisis, stocks of financial companies are great investments, because the tide is bound to turn. Massive losses on bad loans and soured investments are irrelevant to value; improving trends and future prospects are what matter, regardless of whether profits will have to be used to cover loan losses and equity shortfalls for years to come.” YearsMatterUsedValuesTurnsLossCompanyCrisisInvestmentBoundsFinancialProfitMassiveTrendsTidesWhat MattersImprovingIrrelevantEquityLoanProspects Author:Seth Klarman
“... the loss of public confidence in the financial community growing out of its own conduct in recent years. I insist that more damage has been done to stock values and to the future of equities from inside Wall Street than from outside Wall Street.” YearsHas BeensDoneValuesCommunityLossGrowingStreetsWallFinancialDamageEquity Author:Benjamin Graham
“Dreams, in their essence, include risk. This risk could be physical danger (often true in climbing big mountains like Everest), or it could be financial (leaving a comfortable job and pouring your life savings into a business venture), or it could be emotional (like the feelings of loss and questioning that comes with losing friends and coworkers to climbing accidents).” FeelingsDreamBigsJobsLossRiskDangerEmotionalMountainComfortableLosingEssenceLeavingFinancialAccidentsSavingClimbingQuestioningVentureSavingsPouringEverestCoworkerLife SavingLosing Friends Author:Adrian Ballinger
“Concerning our possibilities on the international financial markets, the sanctions are severely harming Russia. But the biggest harm is currently caused by the decline of the prices for energy. We suffer dangerous revenue losses in our export of oil and gas, which we can partly compensate for elsewhere. But the whole thing also has a positive side: if you earn so many petrodollars - as we once did - that you can buy anything abroad, this slows down developments in your own country.” IfsCountryWholeSufferingEnergySidesLossDangerousPossibilityDevelopmentFinancialInternationalHarmOilRussiaGasElsewhereDeclineSlow DownRevenueSanctionsFinancial MarketsOil And Gas Author:Vladimir Putin
“A smart couple with a healthy financial relationship is always talking about money and how they're handling it. If there's a medical emergency or a job loss, talk about it. If there's a windfall, talk about it. Your financial situation is a constantly changing thing.” IfsJobsLossTalkingSituationCoupleHealthySmartFinancialMedicalEmergenciesJob LossTalking About Money Author:Michelle Singletary
“Computer hacking really results in financial losses and hassles. The objectives of terrorist groups are more serious. That is not to say that cyber groups can't access a telephone switch in Manhattan on a day like 9/11, shut it down, and therefore cause more casualties.” CausesLossResultsGroupsSeriousComputerDown AndFinancialAccessTerroristObjectivesTelephonesManhattanCasualtiesHackingCyberHassleTerrorist GroupsComputer HackingFinancial Loss Author:Kevin Mitnick
“Investment banking has, in recent years, resembled a casino, and the massive scale of gambling losses has dragged down traditional activities as banks try to rebuild their balance sheets.” TryingYearsLossModernBalanceActivityConsequenceAspectInvestmentFinancialScalesTraditionalGamblingMassiveSheetsBankingLendingRetailCasinosBalance SheetsInvestment Banking Author:Vince Cable