Barry Ritholtz Quotes
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Any investment bought via credit always runs the risk of margin calls and, eventually, liquidation.
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It is in your DNA to love a good story. You know, neat tales with heroes and villains and conflicts to resolve. A good story pushes our buttons, is exciting and memorable.
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Despite all the media coverage, glitz and glam of hedge funds, they have not done well for their investors. They have high - some say excessively high - fees; their short- and long-term performance has been poor.
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With Twitter, you can build your own virtual trading floor and research department, populated by the smartest people on earth. Almost any subject or sector has you can think of, you can find a few people with an expertise in that area.
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Active management leads to lots of poor investor behavior. It sends people chasing after whoever has the hot hand at the moment.
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If your investing approach requires that you become Nostradamus to succeed, then you are destined to fail.
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When markets are rallying, cash in the portfolio is a drag on performance, returning about zero.
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Many hedge fund managers have become billionaires; perhaps this - plus their reputations as the smartest guys in the room - is why they have captured the investing public's imagination.
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Mutual fund managers want your money in their funds. They get paid based on assets under management.
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Salesmen always need something to sell.
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If I am going to trash others for their dumb predictions, I must at least hold myself to the same sort of accountability.
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Footage of people camped out at Best Buy or elsewhere is not remotely a celebration. Rather, it's a reminder of just how economically distressed a large percentage of our populace is.
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Owning a variety of asset classes means that some part of your portfolio will be doing well when the cyclical turmoil arises. A broadly diversified portfolio includes large capitalization stocks, small cap, emerging markets, fixed income, real estate and commodities.
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Based on a lifetime of observations and a few decades in the markets, I understand that societies, beliefs and fashions all move in long arcs of time. We call these arcs several things: cycles, periods, eras.
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You can blow on the dice all you want, but whether they come up 'seven' is still a function of random luck.
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Anyone can make an article longer; the skill is keeping it tight and lean.
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Often, investors will discover a manager after he's had a terrific run, usually when he lands on a magazine cover somewhere. Invariably, funds swell up with new investor money just before they revert to their long-term averages.
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If you think too-big-to-fail banks are not worthy of investment because of their impossible-to-read balance sheets, well then, don't buy them.
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People who work in specialized fields seem to have their own language. Practitioners develop a shorthand to communicate among themselves. The jargon can almost sound like a foreign language.
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Secular cycles are the long periods - as long as decades - that come to define each market era. These cycles alternate between long-term bull and bear markets.
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If you have read me for any length of time, you know I am less than enthralled with much of what passes for financial news.
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Asset managers have different approaches, and I don't wish to suggest there is only one way to run money. There are many ways one can attempt to reduce risk, improve performance, lower drawdowns and reduce volatility.
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The ability to select stocks, manage them over time and know when to sell them is incredibly difficult, even for professional fund managers.
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When it comes to investing, you are your own worst enemy.