Thoughts from a Tenured Team of Investors

During my two-day blast of management team meetings last week, lunch on the second day was hosted by a panel of mostly elder statesmen in the investment community. Out of four on the panel, three had begun their careers in the 1970’s.

I thought you might be interested in a few interesting quotes I picked out of the hour-long discussion:

Interesting Quotes

  1. From two investors since the mid 70’s, on when the markets may take off again  “If a catalyst is known by everyone, it is no longer a catalyst…..” (Translation: No one knows for sure what is going to happen or the reason it happens.)
  2. “Bad monetary policies are what have driven us to a slower economic situation”
  3. On investing overseas….. “45% of S&P 500 company revenues come from overseas currently and is growing rapidly….I can get an awful lot of good overseas exposure right here in my back yard!”
  4. On Sector rotator and market timers “I have never met a rich sector rotator!” (Translation: Do not over adjust portfolios and never knee jerk.)
  5. “Dividends make up 30-50% of the returns historically….Dividends are great for investors”
  6. “High frequency trading should be renamed Legalized Front Running
  7. “Good or bad investments at the right price usually turn out to be profitable investments”

In closing, the most impactful statement concerning volatility, which we will confirm soon, but wanted to share the statement concerning crazy market movements “Since 2000 until today the S&P 500 has gone up or down 2.5% daily 162 times. This only occurred 150 times from 1950 until 2000!”  (This coincides with our theme of diversification importance.)

Have a Good Day!


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