Top 90 Naved Abdali Quotes (2025 Update)
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51. “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

52. “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

53. “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

54. “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

55. “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

56. “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

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

— Naved Abdali

58. “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

59. “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

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

— Naved Abdali

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

— Naved Abdali

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

— Naved Abdali

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

— Naved Abdali

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

— Naved Abdali

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

— Naved Abdali

66. “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

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

— Naved Abdali

68. “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

69. “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

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

— Naved Abdali

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

— Naved Abdali

72. “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

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

— Naved Abdali

74. “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

75. “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

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

— Naved Abdali

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

— Naved Abdali

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

— Naved Abdali

79. “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

80. “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

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

— Naved Abdali

82. “Bubbles feel like a party.”

— Naved Abdali

83. “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

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

— Naved Abdali

85. “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

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

— Naved Abdali

87. “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

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

— Naved Abdali

89. “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

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

— Naved Abdali

91. “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

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

— Naved Abdali

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

— Naved Abdali

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

— Naved Abdali

95. “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

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

— Naved Abdali

97. “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

98. “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