Institutional investors constantly face countless choices when it comes to allocating capital. Below are 17 insightful and interesting quotes from investment gurus selected by SWFI staff.
“While it might seem that anyone can be a value investor, the essential characteristics of this type of investor-patience, discipline, and risk aversion-may well be genetically determined.”
– Seth Klarman, Founder of Baupost Group
“The underlying principles of sound investment should not alter from decade to decade, but the application of these principles must be adapted to significant changes in the financial mechanisms and climate.”
– Benjamin Graham, “Regarded as the Father of Value Investing”
“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.”
– Warren Buffett, Chairman and CEO of Berkshire Hathaway Inc.
“You adapt, evolve, compete or die.”
– Paul Tudor Jones II, Founder of Tudor Investment Corporation
“Bottoms in the investment world don’t end with four-year lows; they end with 10- or 15-year lows.”
– Jim Rogers
“If investing is entertaining, if you’re having fun, you’re probably not making any money. Good investing is boring.”
– George Soros
“Be wary of the arrogant intellectual who comments from the stands without having played on the field.”
– Ray Dalio, Founder of Bridgewater Associates
“The four most dangerous words in investing are: ‘this time it’s different.’”
– Sir John Marks Templeton
“I’ve lived through periods of illiquidity before. Asset prices come down. The economy slows or even goes into recession. Then the cycle re-starts. We buy at lower prices with less leverage.”
– Stephen A. Schwarzman, Chairman and CEO of the Blackstone Group
“In investing, what is comfortable is rarely profitable.”
– Robert Arnott, Founder and Chairman of Research Affiliates
“If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.”
– Peter Lynch, Former Manager at Magellan Fund at Fidelity Investments
“The bottom line of all of the above is that generous credit markets usually are associated with elevated asset prices and subsequent losses, while credit crunches produce bargain-basement prices and great profit opportunities.”
– Howard Marks, Chairman of Oaktree Capital Management, Inc.
“Bond investors want growth much like equity investors, and to the extent that too much austerity leads to recession or stagnation then credit spreads widen out – even if a country can print its own currency and write its own cheques.”
– William Hunt “Bill” Gross, Co-Founder of PIMCO
“Persist – don’t take no for an answer. If you’re happy to sit at your desk and not take any risk, you’ll be sitting at your desk for the next 20 years.”
– David Rubenstein, Co-Founder and Co-CEO of The Carlyle Group
“The stock market is filled with individuals who know the price of everything, but the value of nothing.”
– Philip Arthur Fisher, Founder of Fisher & Co.
“If you want time to pass quickly, just give a banker your note for 90 days.”
– J.P. Morgan
“If you have trouble imagining a 20% loss in the stock market, you shouldn’t be in stocks.”
– John Clifton “Jack” Bogle, Founder and Former CEO of The Vanguard Group
Turkey Wealth Fund Could Tap Debt Markets in 2019
Turkiye Varlik Fonu or Turkey Wealth Fund could be issuing a large bond in 2019. The loan would most likely be short term in nature with a maturity of two years and be syndicated.
Rahm Emanuel Suggests Bonds to Help Support Chicago Pensions
The outgoing Chicago Mayor Rahm Emanuel revealed a plan on possibly issuing US$ 10 billion in bonds in funding Chicago’s underfunded pension funds. Chicago’s four pension funds have an average funding ratio of 26%. In March 2016, the Illinois Supreme Court ruled an earlier pension reform law effecting employees and laborers’ pension funds that was signed by then Illinois Governor Pat Quinn that the law was unconstitutional.
SoftBank and Alibaba Back PT Tokopedia
PT Tokopedia is an Indonesian generalist e-commerce site. Tokopedia raised US$ 1.1 billion in an investment round led by the SoftBank Vision Fund and Alibaba Group. Softbank Ventures Korea and other investors participated in the round as well. William Tanuwijaya is the CEO and Co-Founder of Tokopedia.
Tikehau Capital and Total SA Form Low Carbon Fund
Tikehau Capital and Total SA created a private equity fund to focus on supporting the energy transition to cleaner sources of energy. The fund held a €350 million first close and raised money from investors such as Bpifrance and Groupama as anchor investors.
The Russian Direct Investment Fund (RDIF) inked a deal with ANAS S.p.A. (formerly known as Azienda Nazionale Autonoma delle Strade), the Italian state highway management company, to implement a concession agreement to build and operate the fourth section of the massive Moscow Central Ring Road. The transaction expects to be finalized in the first quarter of 2019. This is the final section of Central Ring Road, which is 96.5 kilometers long. According to the RDIF, “Under the terms of the concession agreement, the cost of construction is 85.4 billion rubles, of which the concessionaire will provide 49.7 billion rubles and private investors will provide 35.7 billion rubles.”
This long-form podcast was recorded on December 11, 2018. Michael Maduell dissects the latest geopolitical trends that can impact institutional investors such as pensions, sovereign wealth funds, and endowments. Maduell lends his opinion on the lawsuit of Neiman Marcus and bumps in the road for augmented reality.
1:15 Huawei, Canada, Brexit, and Macron Headache
6:30 Sovereign Wealth Fund Asset Allocation
9:58 India Gets a New Central Bank Governor
13:26 Pensions Go Bust on U.S. Retailers
17:04 Augmented Reality and Sovereign Funds
22:00 Former CalPERS CIO Goes to Morgan Stanley Investment Management
24:30 Oman Investment Fund Goes on Defense in Public Markets
25:00 Japanese Scandals and Opportunities
The views in this media are expressed by Michael Maduell and other participants and are not reflective of the Sovereign Wealth Fund Institute (SWFI).
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