Charles Ellis

“There’s an old market saying about stocks to the effect that they all go down together.”

“Large losses are forever – in investing, in teenage driving, and in fidelity. If you avoid large losses with a strong defense, the winnings will have every opportunity to take care of themselves. And large losses are almost always caused by trying to get too much by taking too much risk.”

“Wall Street is pure economics and when profit opportunities look good, debt leverage makes them look better.”

“Only novel “soft-shelled” ideas produce extraordinary returns, because the obvious ideas are already reflected in a stock’s price.”

“It’s absolute cockamamie crazy to sell stocks after they drop. Instead, you should say, “Today there’s a first-rate bargain and I’m buying.””

“The mistake most people make is answering the door just because Mr. Market knocks. You don’t have to let him in.”

“Most of the destruction of investment value occurs in small, private anguishing experiences that are never discussed and never recorded, because people were doing things they never should have done.”

“If you go to the stock market because you want excitement, then sooner or later you will lose.”

“Benign neglect is the secret to long-term investing success.”

“Contrary to their oft-articulated goal of outperforming the market averages, investment managers are not beating the market: The market is beating them.”