Financial Quotes - Page 9

• To value investors the concept of indexing is at best silly and at worst quite hazardous. Warren Buffett has observed that "in any sort of a contest - financial, mental or physical - it's an enormous advantage to have opponents who have been taught that it's useless to even try." I believe that over time value investors will outperform the market and that choosing to match it is both lazy and shortsighted.

  Seth Klarman

  Believe, Silly, Lazy

  7 Copy quote

• The beauty of a financial institution is that there are a lot of ways to go to hell in a bucket. You can push credit too far, do a dumb acquisition, leverage yourself excessively - it's not just derivatives [that can bring about your downfall].

  Charlie Munger

  Dumb, Buckets, Acquisition

  11 Copy quote

• I call it the Rule of Three. If you read a company's financial statements three times, and you still can't figure out how they make their money, that's usually for a reason.

  James Chanos

  Three, Reason, Figures

  7 Copy quote

• 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.

  Seth Klarman

  Thinking, Opportunity, Long

  "The 20 Forgotten Lessons Of 2008". Seth Klarman's annual letter, www.businessinsider.com. April 28, 2010.

  7 Copy quote

  Show source

• 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.

  Seth Klarman

  Stress, Government, Weather

  7 Copy quote

• The government - the ultimate short-term-oriented player - cannot withstand much pain in the economy or the financial markets. Bailouts and rescues are likely to occur, though not with sufficient predictability for investors to comfortably take advantage. The government will take enormous risks in such interventions, especially if the expenses can be conveniently deferred to the future. Some of the price-tag is in the form of back- stops and guarantees, whose cost is almost impossible to determine.

  Seth Klarman

  Pain, Player, Government

  8 Copy quote

• Almost no one will accept responsibility for his or her role in precipitating a crisis: not leveraged speculators, not willfully blind leaders of financial institutions, and certainly not regulators, government officials, ratings agencies or politicians.

  Seth Klarman

  Responsibility, Agency, Government

  12 Copy quote

• None of us always make the best financial decisions.

  Dan Ariely

  Decision

  "Mental depletion complicates financial decisions for the poor". Interview with Kristen Doerer, www.pbs.org. January 19, 2016.

  5 Copy quote

  Show source

• Your immediate environment is comprised of coffee shops, supermarkets, websites, apps and all kinds of things - none of which have an interest in your long-term or short-term financial well-being.

  Dan Ariely

  Coffee, Long, Kind

  "Mental depletion complicates financial decisions for the poor". Interview with Kristen Doerer, www.pbs.org. January 19, 2016.

  22 Copy quote

  Show source

• There are differences of opinion, especially when it comes to economic and financial policy. But when it comes to foreign and especially immigration policy, we are in agreement. No other countries in Europe are closer to each other in this regard than Italy and Germany.

  Paolo Gentiloni

  Country, Agreement, Europe

  Source: www.spiegel.de

  4 Copy quote

  Show source

• We need to move forward, from the common currency to the banking union to a common financial policy and, in the middle-term, to a common foreign and security policy. That will take time, because we need to figure out how to deal with those countries that don't always want a more tightly integrated European Union.

  Paolo Gentiloni

  Country, Moving Forward, Want

  Source: www.spiegel.de

  14 Copy quote

  Show source

• People make mistakes and I'm certainly not saying Bernie Sanders did it for any kind of financial advantage. What we've got to do as Democrats - what we've got to do as Democrats is to be united to actually solve these problems. And what I believe is that I have a better track record and a better opportunity to actually get that job done.

  Hillary Clinton

  Jobs, Mistake, Believe

  Source: www.washingtonpost.com

  4 Copy quote

  Show source

• I called for a consumer protection financial bureau before it was created. And I think the best evidence that the Wall Street people at least know where I stand and where I have always stood is because they are trying to beat me in this primary.

  Hillary Clinton

  Wall, Thinking, People

  "Transcript of the Democratic Presidential Debate". www.nytimes.com. February 5, 2016.

  4 Copy quote

  Show source

• From the 1990s onward, the financial sector created a vast array of instruments designed to separate investors from their money, financial derivatives of an ever-increasing level of complexity. At some point, this complexity reached a point where even the creators of the derivatives themselves didn't understand them.

  John L. Casti

  Levels, Derivatives, Instruments

  Source: bigthink.com

  9 Copy quote

  Show source

• The process of globalization has now interconnected almost everything ranging from financial markets to transport networks to communication systems in a huge system that no one really understands.

  John L. Casti

  Communication, Globalization, Process

  "What If Everything Went Straight to Hell?". Interview with Austin Allen, bigthink.com.

  4 Copy quote

  Show source

• It's a tale of redemption. It's a tale of a girl who is going on a journey, who makes mistakes as most young people do... the credit card companies love sending you credit cards so you exceed your limit and they can charge you interest. And this is a girl who overcomes her problems and figures a way out of her financial crisis, and hopefully the world will do the same thing.

  Jerry Bruckheimer

  Girl, Mistake, Journey

  "Confessions of a Shopaholic - Jerry Bruckheimer interview". Interview with Rob Carnevale, www.indielondon.co.uk.

  4 Copy quote

  Show source

• One of the lessons that I hope people will take out is the extreme dependence simply on the financial sector is really dangerous.

  Juan Enriquez

  People, Lessons, Dangerous

  Source: bigthink.com

  4 Copy quote

  Show source

• There's a lot of health information available on your smart phone. There's financial information. There's your conversations, there's business secrets. There's an enormous long list of things that there's probably more information about you on here than exists in your home, right. Which makes it a lot more valuable to all the bad guys out there.

  Tim Cook

  Smart, Home, Phones

  Source: time.com

  5 Copy quote

  Show source

• People will make worse financial decisions for them if they're choosing from a lot of options than if they're choosing from a few options. If they have more options they're more likely to avoid stocks and put all their money in money market accounts, which doesn't even grow at the rate of inflation.

  Sheena Iyengar

  People, Decision, Rate

  Big Think Interview, bigthink.com.

  4 Copy quote

  Show source

• I mean, we've always had gold bugs, but now we sort of realize that Treasure Bills might be in the same category. And we have derivatives like credit default swaps which are in this category, and we have derivatives like volatilities that are actually an asset class that we can invest in which are now - would out perform if we have another financial crisis.

  Robert F. Engle

  Mean, Class, Gold

  Source: bigthink.com

  4 Copy quote

  Show source

• I don't think the idea of requiring these to be only sold to people who have already own the bonds, in other words, this naked position that the Germans have recently put into their financial regulation and has been discussed here. I don't think that makes any sense.

  Robert F. Engle

  Thinking, Ideas, People

  Source: bigthink.com

  4 Copy quote

  Show source

• When large companies take on risk, then they impose risks on the rest of the system. And these are systemic risks and these systemic risks we never used to think were really that important, but as soon as we recognize how the financial sector - the risks the financial sector takes on can impact the entire global economy, we realize that those risks needed to be controlled for the social good.

  Robert F. Engle

  Thinking, Impact, Risk

  Source: bigthink.com

  8 Copy quote

  Show source

• A lot of ambitious code has been written into the law for those and we will have to see if it actually works, if we have another example of a big financial institution going bankrupt.

  Robert F. Engle

  Law, Ambitious, Example

  Source: bigthink.com

  4 Copy quote

  Show source

• If you create incredible value and information for others that can change their lives - and you always stay focused on that service - the financial success will follow.

  Brendon Burchard

  Information, Stay Focused, Incredibles

  4 Copy quote

• Financial independence is about having more choices.

  Robert Kiyosaki

  Inspirational, Life, Motivational

  6 Copy quote