I’ve always loved to play games, and face it: investing is one big game. You need to be decisive, open-minded, flexible and competitive.
I particularly remember the time I gave (the research director) my paper on the banking industry. I felt very proud of my work. However, he read through it and said, ‘This is useless. What makes the stock go up and down?’ That comment acted as a spur. Thereafter, I focused my analysis on seeking to identify the factors that were strongly correlated to a stock’s price movement as opposed to looking at all the fundamentals. Frankly, even today, many analysts still don’t know what makes their particular stocks go up and down.
The way to build superior long-term returns is through the preservation of capital and home runs…When you have tremendous conviction on a trade, you have to go for the jugular. It takes courage to be a pig.
For 30 years I’ve been responsible for managing client money, and it’s been a joy, but at some point, I need to move on. Thirty years is enough
The way to build long-term returns is through the preservation of capital and home runs.
I think aging demographics is a bigger issue in China than people think. And the problems it creates should become evident as early as 2016
Soros is the best loss taker I’ve ever seen. He doesn’t care whether he wins or loses on a trade. If a trade doesn’t work, he’s confident enough about his ability to win on other trades. There are a lot of shoes on the shelf; wear only the ones that fit. If you’re extremely confident, taking a loss doesn’t bother you.
I love being around kids. I couldn’t figure out why all these 70-year-olds wanted to hang out with me when I was 27. Now I understand, and I’m trying to steal their energy from them like they stole from me at the time.
Whenever I see a stock market explode, six to 12 months later you are in a full-blown recovery.
I’ve learned many things from him [George Soros], but perhaps the most significant is that it’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.
Part of my advantage is that my strength is economic forecasting, but that only works in free markets when markets are smarter than people. That’s how I started. I watched the stock market, how equities reacted to change in levels of economic activity, and I could understand how price signals worked and how to forecast them.
Good debt growth is when you borrow money, and it goes into the real economy. You do capital spending. You build businesses.
I believe that good investors are successful not because of their IQ, but because they have an investing discipline. But, what is more disciplined than a machine? A well-researched machine can make many average investors redundant, leaving behind only the really good human investors with exceptional intuition and skill.
If machines do everything well, including allocating capital and resources efficiently, can that be deflationary, can that eliminate poverty? I don’t know. It’s hard to be very optimistic if you look at how humans have behaved historically.
Once you make a lot of money, it’s incredibly enjoyable to give it away. It’s a way to satisfy the soul.