Naved Abdali > Quotes

“If you are inexperienced, start with a fraction of your money. Don’t play with money that is not yours.”
― Naved Abdali

“Leverage is a two-edged sword. The edge that can cut you, cuts deeper.”
― Naved Abdali

“If you are wearing yellow goggles, every blue thing will appear green to you. It is your perception, and it is your reality.”
― Naved Abdali

“Fear-of-missing-out is more powerful than fear of losing.”
― Naved Abdali

“It is not essential to know when the market will go down. The important thing is what you do when it does.”
― Naved Abdali

“Broad-market indexes like S&P 500 must rise over the long term. The upward path is the only logical direction. Prices can be suppressed for a short period, but eventually, the index will continue its course.”
― Naved Abdali

“Investing is not a war or revolution or anything close to this. You are in this business to make an honest profit.”
― Naved Abdali

“The known is comfortable and easy. The unknown is painful and gut-wrenching. This is the reason people sell at the height of a market downturn.”
― Naved Abdali

“If your initial decision to buy is based on market price, all of your subsequent decisions will be based on price.”
― Naved Abdali

“Human behavior and information bias play a huge role in transaction prices. It creates short-term opportunities that can be exploited.”
― Naved Abdali

“Stocks are not market tickers represented by daily quotes but proportionate ownership of businesses and should be viewed accordingly.”
― Naved Abdali

“Most active investors fail to realize that they are part of the crowd themselves. They are trying to beat the crowd while being the crowd.”
― Naved Abdali

“This tendency of overconfidence and poor outcomes is not confined to only retail investors. Institutional investors suffer from overconfidence equally if not more, and their investment results are not superior either.”
― Naved Abdali

“Whatever anybody does or does not do is based on either greed or fear.”
― Naved Abdali

“Markets are not efficient enough; that’s why we have market peaks and bottoms now and then.”
― Naved Abdali

“The most important thing is to invest and buy shares in successful businesses. The second most important thing is to buy right and do not pay excessive amounts.”
― Naved Abdali

“The combination of our natural desire to be better than our peers, our faulty assumption of dodging risk, and our flawed belief of having better chances than others, pushes us into excessive greed territory. We take more significant and sometimes fatal risks.”
― Naved Abdali

“The greatest fear of a professional investor, who manages money for a living, is capital withdrawals at the wrong time.”
― Naved Abdali

“The decision to invest in an asset class must be rational, not emotional.”
― Naved Abdali

“Investments are not a lottery; if it feels like the lottery, stay away from it.”
― Naved Abdali

“The funny thing about using the last transaction price as a proxy for the fair value is; that even the two people, buyer, and seller, who caused the transaction do not agree that the transaction price is the fair value of that stock. They have opposite views about the real value.”
― Naved Abdali

“In a bubble, people are ready to pay any price without any regard to intrinsic value or any value whatsoever because they believe they can always sell it for a profit.”
― Naved Abdali

“Cash in your bank account is as safe as the creditworthiness of your banker. No more, no less.”
― Naved Abdali

“If an increase in price makes you happy, surely a price drop will make you sad.”
― Naved Abdali

“Activities of capital markets do not create or abolish money; governments do.”
― Naved Abdali

“A considerable part of our emotional realities is often made up by our minds.”
― Naved Abdali

“It is impossible to say whether an asset class valuation is cheap or expensive in isolation. The valuation of an asset is relative to the valuations of all other assets.”
― Naved Abdali

“Capital efficiently and frequently flows between bonds and stocks. It pays to keep an eye on yields offered by these markets.”
― Naved Abdali

“Humans are not machines. They analyze information through the lenses of their experience, knowledge, and cognitive biases. All of it makes their perception, their
unique viewpoint.”
― Naved Abdali

“It may take some time, but capital will eventually flow to the most logical place.”
― Naved Abdali