Top 90 Naved Abdali Quotes (2024 Update)
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51. “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

52. “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

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

— Naved Abdali

54. “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

55. “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

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

— Naved Abdali

57. “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

58. “Investing is not about a once-in-a-lifetime opportunity. It is a life-long journey of prudent investments that grow with time. You need to start small and let the magic of compounding do its trick.”

— Naved Abdali

59. “Predicting a downturn is not critical. The important thing is what you do when a significant downturn happens.”

— Naved Abdali

60. “Always remember that the minority dictates the prices, and the majority governs the value.”

— Naved Abdali

61. “One emotionally-driven investment that causes massive losses is enough to keep you away from all investments for life.”

— Naved Abdali

62. “Activities of capital markets do not create or abolish money; governments do.”

— Naved Abdali

63. “Trading is buying and selling to exploit a change in the price. Investing is acquiring assets for economic reasons.”

— Naved Abdali

64. “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

65. “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

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

— Naved Abdali

67. “It is a common misconception that if you diversify, you don’t need to learn anything. Just buy a bunch of stocks, and you will be good. Nothing can be further from the truth.”

— Naved Abdali

68. “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

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

— Naved Abdali

70. “Generally, a cheap stock is cheap for a reason. If you don’t know the reason, you will be better off investing your capital elsewhere.”

— Naved Abdali

71. “Some people claim that they predicted a downturn, but they forecast a downturn every day, and finally, one day, they are right. Even a broken clock is right twice a day.”

— Naved Abdali

72. “Prices are dominated by the minority, and values are governed by the majority.”

— Naved Abdali

73. “Market participants are humans, and so are their behaviors.”

— Naved Abdali

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

— Naved Abdali

75. “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

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

— Naved Abdali

77. “If you have some working knowledge of business and accounting and have a lot of patience to ride out market ups and downs, you can be a stock picker. You just need to understand that stocks are proportionate ownership of earning businesses.”

— Naved Abdali

78. “Markets are not efficient enough to incorporate actual inherent risk, given information bias, and emotionally challenged participants. Instead, prices are adjusted up to the cumulative perceived risk of all participants.”

— Naved Abdali

79. “Whatever anybody does or does not do is based on either greed or fear.”

— Naved Abdali

80. “Having access to better information is not synonymous with better decisions.”

— Naved Abdali

81. “Over the long term, and I mean a very long term, markets are efficient.”

— Naved Abdali

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

— Naved Abdali

83. “Money managers tend to make irrational decisions just to protect their calendar year performances, even if they believe that decision is not in the best interest of investors.”

— Naved Abdali

84. “An investment made with prudence and caution and keeping all of the rules of self-discipline and risk management is a better investment. It’s better, even if it has ended with a loss.”

— Naved Abdali

85. “Mandatory allocation of capital between bonds and stocks by mutual funds creates tremendous short-term opportunities for investors.”

— Naved Abdali

86. “Bubbles feel like a party.”

— Naved Abdali

87. “Your decision to invest, or not to invest, should be based on pure economics. There is no moral obligation to invest. For moral causes, do charity, do not make investments.”

— Naved Abdali

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

— Naved Abdali

89. “Everybody does some sort of diversification. It is the extent and broadness that varies according to risk tolerance.”

— Naved Abdali

90. “When people hear others’ stories about becoming overnight millionaires, they act upon it and invest their life savings, their houses, and their retirement funds.”

— Naved Abdali

91. “To accumulate any wealth, you must invest at a growth rate higher than inflation.”

— Naved Abdali

92. “A liquidity crisis is ended by government actions and by government actions only. When you see that governments are providing liquidity support or have started talking about it, it is the time to start buying.”

— Naved Abdali

93. “No amount of diversification can replace investment research. If you want to invest, you have to learn.”

— Naved Abdali

94. “There is a considerable information bias that exists among different levels of market participants. The majority of the information is not available to everybody, nor does everybody decide after considering all relevant information.”

— Naved Abdali

95. “Annual performance means nothing to individual investors.”

— Naved Abdali

96. “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

97. “Diversification does not guarantee protection from losses. It provides a weighted-average return of the portfolio.”

— Naved Abdali

98. “The stock market, as a whole, has and will recover from every downturn.”

— Naved Abdali