Value Investors Quotes & Sayings

Soul can't exist unless you have active, meaningful dialogue with stakeholders: employees, customers, the community, suppliers, and investors. When you launch a business, your job as the entrepreneur is to say, 'Here's a value proposition that I believe in. Here's where I'm coming from. This is my point of view.' At first, it's a monologue. Gradually it becomes a dialogue and then a real conversation. Like breaking in a baseball glove. You can't will a baseball glove to be broken in; you have to use it. Well, you have to use a new business, too. You have to break it in. If you move on to the next thing too quickly, it will never develop its soul. Look what happens when a new restaurant opens. Everyone rushes in to see it, and it's invariably awkward because it hasn't yet developed soul. That takes time to emerge, and you have to work at it constantly. — Anonymous

The major asset in this category is gold, currently a huge favorite of investors who fear almost all other assets, especially paper money (of whose value, as noted, they are right to be fearful). Gold, however, has two significant shortcomings, being neither of much use nor procreative. True, gold has some industrial and decorative utility, but the demand for these purposes is both limited and incapable of soaking up new production. Meanwhile, if you own one ounce of gold for an eternity, you will still own one ounce at its end. — Warren Buffett

For value investors, General Motors is a tempting target. The company's share of the North American auto market has steadily declined for two decades, and analysts say the company suffers from weak management and unexciting cars. — Alex Berenson

investors. I have been a student of the philosophy of value investing, which of course was established, executed, and popularized by superinvestors Benjamin Graham, Warren Buffet, and Seth Klarman among — Sundeep Bajikar

Archipelago was created with the vision of making markets better for all investors, a vision that we share with the NYSE and has led us to this historic day. I am extremely proud of the innovation, the technology and the value Archipelago has brought to its customers and shareholders and am excited about combining our strengths with those of the NYSE. — Robert D. Putnam

Investors have no reason to feel bearish. True value investors are glad the markets are down. — Irving Kahn

Value investors continually compare potential new investments with their current holdings in order to ensure that they own only the most undervalued opportunities available. Investors should never be afraid to reexamine current holdings as new opportunities appear, even if that means realizing losses on the sale of current holdings. In other words, no investment should be considered sacred when a better one comes along. — Anonymous

I am obsessed with delivering value to investors and winning the game from a personal standpoint. — Bill Gross

I think good private equity investors create a lot more economic value than they destroy. — Bill Ackman

Investors making purchases in an overheated market need to recognize that it may often take an extended period for the value of even an outstanding company to catch up with the price they paid. — Warren Buffett

Bond investors are the vampires of the investment world. They love decay, recession - anything that leads to low inflation and the protection of the real value of their loans. — Bill Gross

I think the value of venues like CNBC is that they give investors an opportunity to reevaluate the situation minute by minute, but maybe we don't need to follow the market so closely. — Maria Bartiromo

Value investing requires a great deal of hard work, unusually strict discipline, and a long-term investment horizon. Few are willing and able to devote sufficient time and effort to become value investors, and only a fraction of those have the proper mind-set to succeed. — Seth Klarman

In the stock market (as in much of life), the beginning of wisdom is admitting your ignorance. One of the many things you cannot know about stocks is exactly when they will up or go down. Over the long term, stocks generally rise at a nice pace. History shows they double in value every seven years or so. But in the short term, stocks are just plain wild. Over periods of days, weeks and months, no one has any idea what they will do. Still, nearly all investors think they are smart enough to divine such short-term movements. This hubris frequently gets them into trouble. — James K. Glassman

I know of no long-time practitioner who regrets adhering to a value philosophy; few investors who embrace the fundamental principles ever abandon this investment approach for another — Seth Klarman

All the real money in investment will have to be made as most of it has been in the past not out of buying and selling but out of owning and holding securities, receiving interests and dividends therein, and benefiting from their long-term increases in value. Hence stockholder's major energies and wisdom as investors should be directed toward assuring themselves of the best operating results from their corporations. This in turn means assuring themselves of fully honest and competent managements. — Benjamin Graham

It can be shown that maximum diversification is achieved by holding each stock in proportion to its value to the entire market (italics added) ... Hindsight plays tricks on our minds ... often distorts the past and encourages us to play hunches and outguess other investors, who in turn are playing the same game. For most of us, trying to beat the market leads to disastrous results ... our actions lead to much lower returns than can be achieved by just staying in the market. — Jeremy Siegel

In contrast to the speculators preoccupation with rapid gain, value investors demonstrate their risk aversion by striving to avoid loss. — Seth Klarman

Investors should remember that their scorecard is not computed using Olympic-diving methods: Degree-of-difficulty doesn't count. If you are right about a business whole value is largely dependent on a single key factor that is both easy to understand and enduring, the payoff is the same as if you had correctly analyzed an investment alternative characterized by many constantly shifting and complex variables. — Warren Buffett

Value investing is simple to understand but difficult to implement. Value investors are not supersophisticated analytical wizards who create and apply intricate computer models to find attractive opportunities or assess underlying value. The hard part is discipline, patience, and judgment. Investors need discipline to avoid the many unattractive pitches that are thrown, patience to wait for the right pitch, and judgment to know when it is time to swing. — Seth Klarman

The answer to information asymmetry is not always the provision of more information, especially when most of this 'information' is simply noise, or boilerplate (standardised documentation bolted on to every report). Companies justifiably complain about the ever-increasing volume of data they are required to produce, while users of accounting find less and less of relevance in them. The notion that all investors have, or could have, identical access to corporate data is a fantasy, but the attempt to make it a reality generates a raft of regulation which inhibits engagement between companies and their investors and impedes the collection of substantive information that is helpful in assessing the fundamental value of securities. In the terms popularised by the American computer scientist Clifford Stoll, 'data is not information, information is not knowledge, knowledge is not understanding, understanding is not wisdom'.9 In — John Kay

It's nice to do an IPO where your investors get value straightaway and the share price pops up; it proves you left something on the table for them. — Ivan Glasenberg

As value investors, our business is to buy bargains that financial market theory says do not exist. We've delivered great returns to our clients for a quarter century-a dollar invested at inception in our largest fund is now worth over 94 dollars, a 20% net compound return. We have achieved this not by incurring high risk as financial theory would suggest, but by deliberately avoiding or hedging the risks that we identified. — Seth Klarman

Tax systems are essentially the mechanisms by which societies decide what people have to share with each other versus what they can keep for themselves.

Instead of taxing production and consumption, we can simply capture land value instead. Maxim: Keep what you earn, pay for what you use.

In such a system, employees, consumers, business owners, business investors, homeowners, farmers and even retirees would be better off. Only those who use land inefficiently or seek to profit from it directly would lose - land speculators, banks, mining companies, extractive industries. — Martin Adams

An investor calculates what a stock is worth, based on the value of its businesses. — Benjamin Graham

Rip Van Winkle would be the ideal stock market investor: Rip could invest in the market before his nap and when he woke up 20 years later, he'd be happy. He would have been asleep through all the ups and downs in between. But few investors resemble Mr. Van Winkle. The more often an investor counts his money - or looks at the value of his mutual funds in the newspaper - the lower his risk tolerance. — Richard Thaler

The late 90s almost forced me to identify myself as a value investor, because I thought what everybody else was doing was insane. — Michael Burry

well-functioning market requires all three types of investors for socially beneficial projects to have access to cheap capital. Value investors allocate capital to its most productive use. Speculators, because they trade frequently, provide the liquidity and trading volume that allows value investors and relative value traders to execute their trades cheaply. They also ensure that information is disseminated quickly. — Michael Pettis

Real investors should never feel bearish because the time to buy value is when markets go down! — Irving Kahn

Value investors will not invest in businesses that they cannot readily understand or ones they find excessively risky. Hence few value investors will own the shares of technology companies. Many also shun commercial banks, which they consider to have unanalyzable assets, as well as property and casualty insurance companies, which have both unanalyzable assets and liabilities. — Seth Klarman

Be greedy when others are fearful and fearful when others are greedy.' Easier said than done for the vast majority of stock traders ... On every stock trade there is someone who wants to sell and someone who wants to buy, at least at a particular price ... the person who is selling thinks that she is getting out just in time while the person buying thinks that he is about to make good money.
... The truth is that the market doesn't really reflect some magical perfect valuation of a stock under the efficient market hypothesis. It reflects the mass consensus of how actual individual investors value the stock. It is the sum total of everyone's hopes and fears ... — M.E. Thomas

Armed with an awareness of how investors value intangibles, — Brian E. Becker

Investors should pay attention not only to whether but also to why current holdings are undervalued. It is critical to know why you have made an investment and to sell when the reason for owning it no longer applies. Look for investments with catalysts that may assist directly in the realization of underlying value. Give reference to companies having good managements with a personal financial stake in the business. Finally, diversify your holdings and hedge when it is financially attractive to do so. — Seth Klarman

Value investors look at cash flows. If a company can maintain present cash flows for 5 or 6 years, it's a good investment. Investors then just hope that those cash flows - and thus the company's value - don't decrease faster than they anticipate. — Peter Thiel

Successful real estate investing begins with identifying value. How do investors identify value? That's easy. They look at real estate. They look at a lot of real estate. They look very carefully at a lot of real estate. I wish I could tell you there was a shortcut, but there's not, and I caution you against trying to create one. When you are starting to learn the value of real estate in an area, you will need to look at a lot of real estate. And as you carefully begin to get a sense of what people are asking and what people are willing to pay, you gain a sense of market value - what's worth what. This applies to both sales prices and rental rates. These are the two big variables in the value equation. — Gary Keller

The truth is that the market doesn't really reflect some magical perfect valuation of a stock under the efficient market hypothesis. It reflects the mass consensus of how actual individual investors value the stock. It is the sum total of everyone's hopes and fears about what a company is capable of doing. — M.E. Thomas

Value investors should completely exit a security by the time it reaches full value; owning overvalued securities is the realm of speculators. — Seth Klarman

The superior performance of the original S&P 500 firms surprises most investors. But value investors (as described in Chapter 12) know that growth stocks often are priced too high, and excitement over their prospects often induces investors to pay too high a price. Profitable firms that do not catch investors' eyes are often underpriced. If investors reinvest the dividends of such firms, they are buying undervalued shares that will add significantly to their return. — Jeremy Siegel

According to the media and other stock market "experts," the equities bull is forever hiding just around that next corner on Wall Street. But millions of investors who listened to the experts back in 1998-2001 about "the New Economy" get hammered in the stock market and are still trying to get back to even.
The smart investor looks for opportunities to acquire value on the cheap, with one eye out for a dynamic change in the offing that might make that investment even more valuable. — Jim Rogers

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

The most important attribute for success in value investing is patience, patience, and more patience. The majority of investors do not possess this characteristic. — Peter Cundill

It's not always easy to do what's not popular, but that's where you make your money. Buy stocks that look bad to less careful investors and hang on until their real value is recognized. — John Neff

I learned an important lesson - that the value of the stock is not the same as the underlying value of the company. The stock goes up and down according to the whims and wiles of Wall Street. The value of the company depends on elements that contribute to the creation of real value - things like providing superior products at fair prices. You need to be learning and innovating, giving your people interesting, motivating work and compensating them fairly, creating value for your community, and doing it all in a way that yields a good profit. That's not what much of Wall Street values, but it's what creates long-term value for investors. — Jim Koch

Prove to yourself that your business, in micro-scale at least, creates value. If you believe it, you'll find it that much easier to convince potential investors, partners and employees, too. — Eric Ries