Top 90 Naved Abdali Quotes (2024 Update)

1. “Identical information can lead to opposite conclusions based on relative perceptions of its receivers.”

— Naved Abdali

2. “The success of an investment is all about its execution and is not about its outcome.”

— Naved Abdali

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

— Naved Abdali

4. “The discounted cash flow model of valuation is the most helpful tool for separating intrinsic and extrinsic values.”

— Naved Abdali

5. “Fear-of-missing-out is more powerful than fear of losing.”

— Naved Abdali

6. “Leverage has the potential to turn a reasonably good investment into disastrous gambling.”

— Naved Abdali

7. “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

8. “The perceived risk and actual risk are two different things.”

— Naved Abdali

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

— Naved Abdali

10. “Recessions are there to take your investment game to the next level. A recession should help you reach your targets sooner.”

— Naved Abdali

11. “Leveraging is not evil but must be used with extreme caution and care. You must understand that over-leveraging is the prime reason for all market blowups.”

— Naved Abdali

12. “Market prices only matter at two points of time in the investment life cycle. First when you buy and second when you sell. In between these two points, value matters.”

— Naved Abdali

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

— Naved Abdali

14. “Capital must flow from low yield to high yield and from high risk to low risk, everything else being equal.”

— Naved Abdali

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

— Naved Abdali

16. “You must not be a seller if not a buyer in a massive down-turn.”

— Naved Abdali

17. “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

18. “Putting money in a savings account is not going to make anybody rich. It is making the depositors poor every day if you count the inflation.”

— Naved Abdali

19. “Cash is never a king, especially when people repeat the phrase often.”

— Naved Abdali

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

— Naved Abdali

21. “Economic conditions may differ from period to period, but human psychology is embedded among us and will not change.”

— Naved Abdali

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

— Naved Abdali

23. “If the prices were the motivation for buying, all future behavior and decisions would be based on price action.”

— Naved Abdali

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

— Naved Abdali

25. “Excess liquidity is the leading source of all bubbles.”

— Naved Abdali

26. “Liquidity collapse is not the sign of the market bottom. It is instead a sign that the bottom is not far.”

— Naved Abdali

27. “There is no need to be a warrior of your investment community. You don’t invest to prove a point or to protect an investment ideology. There is only one goal; grow your pile of capital over time.”

— Naved Abdali

28. “Selecting twenty to thirty good stocks in unrelated industries is not an easy task. It takes immense efforts to follow twenty shares, so investors take the shortcut. They try to replace the efforts with more shares, hundreds of those.”

— Naved Abdali

29. “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

30. “Always remember, the minority dictates the price. A company may have billions of shareholders, but it only takes one shareholder to change the price.”

— Naved Abdali

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

— Naved Abdali

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

— Naved Abdali

33. “When enough people believe that prices will keep rising forever, a bubble starts.”

— Naved Abdali

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

— Naved Abdali

35. “If you are leveraged five times of your capital, a 20% move in your preferred direction can double your capital, but a similar move in the opposite direction can wipe you out.”

— Naved Abdali

36. “When you buy a stock, you buy a piece of business, not a quote from a broker. As long as the company is doing good, your investment is safe.”

— Naved Abdali

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

— Naved Abdali

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

— Naved Abdali

39. “In the investment world, greed and fear are the lifeblood. Without these, there would be no economy, no capital market, and no transaction.”

— Naved Abdali

40. “Somehow, we believe that we have a better chance of winning a game of probabilities, totally disregarding that everybody who is playing the game has the same possibility of winning.”

— Naved Abdali

41. “If you have a leveraged position, make sure nobody can take it away.”

— Naved Abdali

42. “Capital loves yield, and it flows in the direction of higher profits.”

— Naved Abdali

43. “The last transaction price is the least accurate measure of the fair value.”

— Naved Abdali

44. “All of us need to invest our capital to achieve financial freedom, but most of us are not equipped with the soul and skills to have concentrated portfolios.”

— Naved Abdali

45. “A trader needs to be highly skilled and extremely lucky to beat the market consistently. If a trader is highly skilled but not lucky enough or extremely lucky but modestly skilled, he will beat the market occasionally but not consistently. Traders that are modestly skilled and modestly lucky will briefly beat the market but will be behind the market most of the time. Everybody else will lose money on a long-term basis, that is, 90% of the traders.”

— Naved Abdali

46. “Always write down all the reasons of why you are buying an asset. Review the list periodically and only sell when the majority of reasons are not valid anymore.”

— Naved Abdali

47. “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

48. “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

49. “If you decide to buy a stock solely based on price action, you cannot and will never have any faith in the company’s business.”

— Naved Abdali

50. “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