Financial Risks Quotes

“There is an excellent characteristic of stock investment that it can only go to zero.”
― Naved Abdali

“I believe when using leverage, the following four conditions must be met. 1. Leverage must be in the general direction of a secular trend. 2. Leverage should never expire. 3. Leveraged positions should not be subject to forced sell. 4. The maximum possible loss should not be more than the invested capital.”
― Naved Abdali

“Cash and bank deposits are not risk-free investments. They suffer substantial hidden risks like inflation, credit, and foreign exchange.”
― Naved Abdali

“In concentrated portfolios, market fluctuations are magnified. All market noises look like real events.”
― Naved Abdali

“Be realistic about potential market returns, and be aware of possible risks.”
― Naved Abdali