The bank with the best assets doesn't always win. The bank that survives is the one that doesn't make the fatal mistake. In investing, the one who loses least often wins most.

The market is a voting machine in the short run and a weighing machine in the long run — but what most people miss is that the weighing takes far longer than anyone expects, which is precisely why so few investors ever collect the reward for being right.

Most people think that finding a hot stock is investing. Finding a stock that is cheap is not enough; you also need a catalyst — something that will actually cause the price to reflect the value. Without a catalyst, you can be right and still lose money for years.

Most people think of risk as the probability of losing money. But the real risk is the permanent impairment of capital — a temporary price decline is not a loss unless you sell. The investor who confuses volatility with risk will systematically sell at exactly the wrong moment.

The best way to think about how markets work is to imagine a voting machine in the short run and a weighing machine in the long run — but most people spend their entire careers trying to win votes instead of actual weight.

The record of a money manager who merely stays close to the market is not an outperformance record—it is a perfect recipe for underperformance after fees. The question is never 'did I beat the benchmark?' but 'did I add enough value to justify the cost of active management?' Most cannot answer yes, and most won't admit it.

A stock is not just a ticker symbol or an electronic blip; it is an ownership interest in an actual business, with an underlying value that does not depend on its share price. The market is there to serve you, not to instruct you.

The record of a money manager who merely stays close to the market is not an outstanding record—it is a record of someone who has successfully rationalized doing nothing. The question is not whether you beat the market, but whether you had the intellectual honesty to know when you had no edge and the discipline to act accordingly.

The stock market is filled with individuals who know the price of everything, but the value of nothing. The secret to investing is to figure out the value of something — and then pay a lot less for it.

The stock market is filled with individuals who know the price of everything, but the value of nothing. A great company is not a great investment if you pay too much for it — and a mediocre company can be a fine investment if you buy it cheaply enough.

The big difference between what I do and what a lot of people in the hedge fund world do is that I actually think about the economics of the business, whereas a lot of people are just trying to make a quick buck.