David Winters Quotes
110 David Winters Quotes (David J Winters, Wintergreen Fund, Mutual Shares)
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[In July 2007.] Mr Market is often irrational… you’ve got to take advantage of market fluctuation rather than be a victim of it.
David Winters
[In November 2004.] In every case… what we’re trying to do is buy a dollar bill for as little as possible.
David Winters
[In November 2004.] We don’t want to pay a lot for the future. We want to get a company’s value today at a discount.
David Winters
[In 2001.] Purchasing securities in a good business that is trading at a material discount to intrinsic value and has an honest, motivated management team is a solid way to make money in the long run.
David Winters
[In July 2007.] We’ve found over the years that in the best investment situations, the more you dig at them the more good stuff you find.
David Winters
[In July 2007.] The new 52 week low list is a great place to look. And sometimes it isn’t just individual names, but a sector may be out of favor.
David Winters
[In July 2007.] The ultimate downside risk in a security is permanent loss of your capital.
David Winters
[In July 2007.] Even when an investment is great, if it trades at full and fair value, at best it’s dead money… in all likelihood there is a better use for the money elsewhere.
David Winters
[In July 2007.] I started the David Winters investment account when I was 5, so I definitely have some of the DNA…
David Winters
[In July 2007.] I try to learn everyday…
David Winters
[In July 2007.] You want to go to sleep at night knowing that you’re incrementally getting a little wealthier, even if the stock price or the bond price does not reflect it. You have to recognize the impact of time on your investment.
David Winters
[In July 2007.] Oftentimes the best people in the investment business are not the 22 year olds who are often the champions in the professional sports, but the 72 year olds.
David Winters
[In July 2007 on someone being an index hugger.] Being overweight or underweight some index by ten basis points is not investing.
David Winters
[In July 2007.] Human nature hasn’t changed very much over the years.
David Winters
[In July 2007.] Sometimes you just have to be patient and wait for the fat pitch.
David Winters
[In February 2008.] If there was a lesson from Max Heine, it was to think long term and don't go where the crowd goes.
David Winters
[In March 2013.] Don't own leveraged black boxes…
David Winters
[In August 2001.] Yes, I do read annual reports in my canoe.
David Winters
[In October 2001.] The vast majority of Wall Street research should be used to line birdcages.
David Winters
[In 2001.] Value Investing – A philosophy for life.
David Winters
[In 2001.] Value investing is the purchase of a dollar of assets for as little as possible.
David Winters
[In 2001.] If the lemmings are all running over the cliff, the value investor could profit from their collective behavior…
David Winters
[In 2001.] Value investors as a group are fanatical believers in their chosen approach; the philosophy often becomes intertwined in their daily lives. Rarely will a true believer willingly pay retail for any item. Sale sand bargain purchases are the modus operandi. Following the crowd is anathema to them.
David Winters
[In 2001.] In the 1960s
Sir John [Templeton] was a buyer of Japanese stocks at prices of three and four times earnings. Very few foreign investors understood the scope of the opportunity. By the 1980s, when Japanese security prices reached astronomical and ultimately unsustainable levels, Templeton was long gone.
David Winters
[In 2001.] For value investors their hallmark is low risk and high returns over time.
David Winters
[In 2001.] Geoffrey Scott, a Canadian value investor, likes to quote the old maximum ‘Well bought is half sold.’
David Winters
[In 2001.] Companies with good business characteristics, such as the ability over time to increase business values, are more likely to be rewarding than are companies whose securities are merely cheap.
David Winters
[In 2001.] Pay careful attention the management – their motivations, integrity, and level of commitment to all shareholders… When investing in a company, you are handing your wallet to that particular management team.
David Winters
[In 2001.] When investing in a company, you are handing your wallet to that particular management team. The possible outcomes are 1) Your wallet never comes back (very bad); 2) Your wallet comes back with little difference in the cash in the billfold (not good, and the time value of money works against you); or 3) your wallet comes back with much more cash: the best outcome.
David Winters
[In 2001.] Management does matter a lot… how managers behave will largely determine the outcome for investors.
David Winters
[In November 2004 on how he started with the Mutual Series Funds (Later sold to Franklin Templeton Funds in 1996.) and Max Heine in 1987.] Because of my interest in railroads. In 1987, I found an obscure stock traded on the pink she4ets called the Richmond, Fredericksburg & Potomac Railroad [Now part of CSX]. A man named Hans Jacobson, who sat next to Max Heine, made a market in the stock. So I called him one day and said I wanted to buy shares. I got this very German voice saying, ‘Vell, of course. How many shares would you like?’ I replied, ‘Five shares.’ And that began this beautiful relationship that culminated with Hans’s saying, ‘Vhy don’t you come to verk for me?’ And I did.
David Winters
[In November 2004.] Max [Heine] Believed that if you bought something valuable for as little as possible, you took a lot of risk out and, over time, your investment would compound at a nice rate of return. And he did that not only by buying stocks, but also by investing in distressed securities and, to some extent, in stocks involved in mergers.
David Winters
[In November 2004 on what he means by distressed securities.] Mostly, defaulted bonds. The company is not paying interest, and the bonds are trading at a discount to par [face] value.
David Winters
[In November 2004.] We got very excited when Pacific Gas & Electric filed for bankruptcy in 2001. We determined that its bonds were worth at least 100 cents on the dollar, and that at a price of 60 cents, which is as little as what we paid for some of the bonds, we had very little downside risk. It was just a matter of time before the bonds got back to 100 cents. We eventually sold them at 100 cents plus 15 cents’ worth of back interest.
David Winters
[In November 2004 on how he finds cheap stocks.] The ideas come from anywhere, from looking at the list of stocks making 52 week lows to simply paying attention to what’s going on in the world. A couple of years ago, a friend gave me a book called ‘Personal History by
Katharine Graham. Halfway through the book, I said to myself, Oh, my God. This lady’s got guts, integrity and money-making ability.
David Winters
[In November 2004.] Ultimately, a security’s worth is not based on some five or ten year projection into the future… How the heck can I know what will happen in ten years? The more important issue is what the company is worth on an ongoing basis today.
David Winters
[In November 2004.] Max Heine would have said, ‘If I pay 50 cents for $1 of value, somebody will come along and pay 75 cents.’
David Winters
[In November 2004.] The problem with technology is that it changes so rapidly… I would rather invest in a company like Brown-Forman, which sells Jack Daniel’s.
David Winters
[In November 2004.] Max used to say, ‘Feed the chickens when they’re hungry.’ So we try to sell securities when they start approaching full value. Or if we make a mistake.
David Winters
[In November 2004 on how he knows whether he has made an investing mistake.] Either the business is deteriorating or our basic thesis about the company is wrong.
David Winters
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