Investing Words

Timeless Insights, Extracts, Passages from the most inspiring Investors in their own Words: Books, Interviews, Talks, etc..

Learning in Public, and Sharing.

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[Investing Words @InvestingWords]

"LABEL" or "LABELING" can be misleading.

Everything is more complex than it, the reality has different facet and labeling can allow us to look only at one of them.
Here Chris Mayer talks about it and how it affects our way of seeing the market.
https://t.co/IMZjQFhkfS

[Investing Words @InvestingWords]

INCENTIVES,
a few ones from Charlie Munger:

"You get what you reward for"

"If you have a dumb incentive system, you get dumb outcomes,"

"Perhaps the most important rule in management is 'Get the incentive right'"

""show me the incentive and I'll show you the outcome"

[Investing Words @InvestingWords]

@IrrationalMrkts anything Y/Y for many years: the evolution of each of the important metrics in TIME

[Investing Words @InvestingWords]

"How Walton did this (increase sale per store 7 times from 1967 to 1980, ndr)? By continuing trying new things, expanding product offerings, and broadening the customer base"

[Investing Words @InvestingWords]

Why "Calculated risk" is so important.

From the paragraph:
"Highly Robust Businesses Evolve by Taking Calculated Risks". Pulak Prasad, What I larned about investing From Darwin, 2023

[Investing Words @InvestingWords]

"Every crazy thing we tried hadn't turned out as well as the ice cream machine, of course, but we didn't make any mistakes we couldn't correct quickly, none so big that they threatened the business" (Sam Walton)

[Investing Words @InvestingWords]

"Stocks move  around between the two. They really don’t mean much of anything when you’re in the business  of owning individual stocks and businesses. You could do without  that terminology entirely, and I don’t think  you lose anything at all. "

[Investing Words @InvestingWords]

"when the big theme was crypto currencies,
all these lousy cheap small tiny companies add crypto to their name and their stocks would run up, even though they might have no sales and they just have this idea that they're a crypto company"

[Investing Words @InvestingWords]

"This  is a value stock; this is a growth stock. And  those categories, of course,  have very little meaning. When you get  down into it, you can see people who call themselves value investors own stocks  that are also owned by people who call  themselves growth investors. "

[Investing Words @InvestingWords]

"we use a lot of labels and we're constantly labeling things and they have a real impact on how the market thinks. I remember reading about the 60s,
when Electronics was popular companies would rename themselves so they could put Electronics in their name, the stock would pop."

[Investing Words @InvestingWords]

"LABEL" or "LABELING" can be misleading.

Everything is more complex than it, the reality has different facet and labeling can allow us to look only at one of them.
Here Chris Mayer talks about it and how it affects our way of seeing the market.
https://t.co/IMZjQFhkfS

[Investing Words @InvestingWords]

"Over time, the little advantages compound into much larger advantages, which can persist far longer than conventional wisdom expects. The answer to the question, “What will widen the company’s moat?”should always drive management’s strategy." Gautam Baid, The Joys of Compounding

[Investing Words @InvestingWords]

“To my mind, the stock price is the least useful information you can track, and it’s the most widely tracked.” Peter Lynch, One Up on Wall Street

[Investing Words @InvestingWords]

“It’s remarkable how much long-term advantage people like us have gotten by trying to be consinstently not stupid, instead of trying to be very intelligent. There must be some wisdom in the folk saying,”Its the strong swimmers who drown.” Charlie Munger, Wesco Annual Report, 1989

[Investing Words @InvestingWords]

“No amount of sophistication is going to allay the fact that all your knowledge is about the past and all your decisions are about the future.” Ian E. Wilson

[Investing Words @InvestingWords]

https://t.co/Gn1ZnekJfx

[Investing Words @InvestingWords]

"The word “family” also reflects a basic orientation. Successful families tend to think long-term. They think of the next generation. " Chris Mayer

[Investing Words @InvestingWords]

"They tend to be patient. They tend to use less debt. You can see all this in the behavior of publicly traded firms controlled by families. " Chris Mayer