David Einhorn Quotes

Optimization tells us precisely how to diversify the portfolio, whether I should have 12% in semiconductors or 4% in biotech, etc., and it literally tells me how to diversify not only the industry groups but the stocks.

Always keep your portfolio and your risk at your own individual comfortable sleeping point.

I invest in funds myself even though I run my own fund for my daughters.

The fundamental work of investment management is filtering. The question is what do you filter.

Investing should be dull. It shouldn't be exciting.

Well, there's always risk in long-term investment.

You just have to approach every day and say, 'If you were starting fresh today, what would my portfolio look like?' So that's how we think about it.

There is a close logical connection between the concept of a safety margin and the principle of diversification.

Wide diversification is only required when investors do not understand what they are doing.

There's a tendency to look at investments in isolation. Investors focus on the risk of individual securities.

We test everything on a one- and a three-year cycle. And you want to stress-test a model, and the three-year test usually does that because you have a growth and value bias. You have different interest rate environments.

Investors have to ask themselves two questions. How much can we grow our investments? And, can we afford our mistakes?

The thing to do with mutual funds is to buy a couple of decent ones, set up an investment plan and then never, ever think about them again, except maybe once a quarter or so when you take a peek at your statements to make sure that you have not accidentally been buying the Fidelity Peace-in-the-Middle-East fund.

It is important for investors to understand what they do and don't know. Learn to recognize that you cannot possibly know what is going to happen in the future, and any investment plan that is dependent on accurately forecasting where markets will be next year is doomed to failure.

In long term investments, you don't need day to day management.

In my day job, I worry non-stop about making wise investments for long-term gains.

I'm a very passive investor.

No one knows what the top-performing asset class will be next year. Lacking this prescience, your next-best solution is to own all of the classes and rebalance regularly.

When it comes to investing, there is no such thing as a one-size-fits-all portfolio.

The last thing you want to do, unless it's a very unusual situation, is to invest money.

Investing is a business where you can look very silly for a long period of time before you are proven right.

Many follow a rule of thumb - no more than 5% in one stock. But that's not the entrepreneurial road to riches.

Having the opportunity to follow the market frequently gives you the opportunity to see if you need to reevaluate your portfolio. But reevaluating your portfolio shouldn't trigger a sell signal so frequently.

I would never be 100 percent in stocks or 100 percent in bonds or cash.

If you are not making any mistakes, you are being excessively risk-averse. Investing involves risk, and that means you will occasionally be wrong. And although it is okay to be wrong, it is not okay to stay wrong.