David Tepper Quotes

Liabilities are just assets in hiding.

Capital isn't this pile of money sitting somewhere; it's an accounting construct.

When you're levered 9 to 1, it'd be unreal for a bank to go down.

As well as, we know, as a real estate developer, [Donald Trump] has hundreds of millions of dollars in debt, in loans.

The liabilities are always 100 percent good. It's the assets you have to worry about.

Some, but much of my money is tied up in Playboy stock.

For business owners, there are many important documents to learn to read. One of the most important is the profit and loss statement, known as the P&L, and the balance sheet.

You know, when the cost of capital goes down, when credit becomes cheap, people start taking greater and greater risks.

Business is other people's money.

Manchester United and Liverpool have been bought with huge leverage, and we've got Roman Abramovich at Chelsea who can turn his loans into shares. It is really important for the Premier League to ask itself: if a club is being bought on such a mountain of debt, isn't that a possible recipe for disaster for the future?

When you are buying companies, everyone in the company feels very good. Their chests are puffed out. At Blackstone, I used to tell people that there is nothing more fun than buying a company with somebody else's money. The business is growing, which creates more opportunity for your employees.

Not so long ago, companies that borrowed lots of money were considered risky, appropriate only for daredevil stock pickers. Those with lots of cash on hand and few outstanding debts might be dull stocks, but they were at least safe bets for bondholders.

I want to control the company, but I don't know how life goes. We are already a big company, and the larger our capitalization is, the lower goes the threshold for control.

One of the problems with hedge funds is that they are changing so rapidly. If you have the balance sheet that closed business last night, by 11 A.M. this morning, that won't tell you very much about what they're doing.

Equity capital is expensive. Every time you do a raise, you dilute.

The transaction cost approach maintains that some projects are easy to finance by debt and ought to be financed by debt. These are projects for which physical-asset specificity is low to moderate.

You do not want to get your debt ratio out of whack.

Large credit guarantees also impede optimal allocation of financial resources and increase moral hazard.

But NESV has always had debt from the first day we purchased the Red Sox. We have some partners who look at Internal Rate of Return (IRR) and almost demand that we have debt as a consequence.

Legislative reforms in the 1990s and the public/private structure led managements to expand the GSEs' balance sheets to enormous size, underpinned by wafer-thin slivers of capital, driving high shareholder returns and very high compensation for management.

Edelman maintains a very conservative balance sheet. We do small acquisitions. This helps me sleep well at night.

Our company was mortgaged to the hilt, and that did restrain us, and it's why we had to take in partners.

What's fascinating . . .is that you could now have a business that might have been selling for $10 billion where the business itself could probably not have borrowed even $100 million. But the owners of that business, because its public, could borrow many billions of dollars on their little pieces of paper- because they had these market valuations. But as a private business, the company itself couldn't borrow even 1/20th of what the individuals could borrow.

Instead of hoping he must fear and instead of fearing he must hope. He must fear that his loss may develop into a much bigger loss, and hope that his profit may become a big profit.

The margin of safety is always dependent on the price paid. It will be large at one price, small at some higher price, nonexistent at some still higher price.