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

— Naved Abdali

4. “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

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

— Naved Abdali

6. “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

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

— Naved Abdali

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

— Naved Abdali

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

— Naved Abdali

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

— Naved Abdali

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

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

— Naved Abdali

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

— Naved Abdali

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

— Naved Abdali

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

— Naved Abdali

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

— Naved Abdali

18. “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

19. “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

20. “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

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

— Naved Abdali

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

— Naved Abdali

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

— Naved Abdali

24. “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

25. “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

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

— Naved Abdali

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

— Naved Abdali

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

— Naved Abdali

29. “All common investments have a great feature; the maximum amount you can lose is your capital.”

— Naved Abdali

30. “Humans’ reactions are contaminated with their cognitive biases, greed, fear, and survival instinct. However, capital market success requires precisely the opposite behavior of what your intuition is suggesting.”

— Naved Abdali

31. “Prices are adjusted up to the cumulative perception of risk of all market participants.”

— Naved Abdali

32. “Every transaction, irrespective of how low the price is, proves one fact; that there is a buyer on the other side. Somebody is buying.”

— Naved Abdali

33. “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

34. “Every all-time high of the stock market proves that the market has eventually recovered from all downturns, 100% of the time. This strategy is the only one that worked every time without a single failure for centuries.”

— Naved Abdali

35. “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

36. “Greed pulls people in, and fear pushes them out.”

— Naved Abdali

37. “If your bull case to buy a stock is “a sharp price drop” or “price is going to the moon”, you don’t have a bull case.”

— Naved Abdali

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

— Naved Abdali

39. “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

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

— Naved Abdali

41. “Proper diversification can be achieved with a handful of assets. On the other hand, a poorly selected portfolio with hundreds of stocks and bonds can be inadequate for diversification purposes.”

— Naved Abdali

42. “Markets can be volatile from time to time; however, stock prices follow earnings accumulation over the long term.”

— Naved Abdali

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

— Naved Abdali

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

— Naved Abdali

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

— Naved Abdali

46. “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

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

— Naved Abdali

48. “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

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

— Naved Abdali

50. “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