Lou Simpson Quotes
102 Lou Simpson Quotes (GEICO, SQ Advisors)
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Even the world’s greatest business is not a good investment, if the price is too high.
Lou Simpson
Moving in and out of stocks frequently has two major disadvantages that will substantially diminish results: transaction costs and taxes.
Lou Simpson
In many ways, the stock market is like the weather in that if you don’t like the current conditions all you have to do is wait awhile.
Lou Simpson
I think it is very important to look at your mistakes and determine why you made them.
Lou Simpson
Think independently.
Lou Simpson
I’d say I try to read at least five to eight hours a day.
Lou Simpson
Invest in high return businesses run for the shareholders.
Lou Simpson
You can have all the written information in the world, but I think it is important to figure out how senior people in the company think.
Lou Simpson
When you ask whether someone is a value or growth investor – they’re really joined at the hip. A value investor can be a growth investor because you’re buying something that has above-average growth prospects and you’re buying it at a discount to the economic value of the business.
Lou Simpson
We try to be skeptical of conventional wisdom…
Lou Simpson
We don’t ignore unpopular companies.
Lou Simpson
Over the long run, appreciation in share prices is most directly related to the return the company earns on its shareholders’ investment.
Lou Simpson
Managers who run a profitable business often use excess cash to expand into less profitable endeavors. Repurchase of shares is in many cases a much more advantageous use of surplus resources.
Lou Simpson
Attempting to short-term swings in individual stocks, the stock market, or the economy, is not likely to produce consistently good results.
Lou Simpson
Good investment ideas… are difficult to find. When we think we have found one, we make a large commitment.
Lou Simpson
Most investors should own no more than 10 to 20 stocks.
Lou Simpson
We’re still learning…
Lou Simpson
When we make mistakes, we always try to do postmortems.
Lou Simpson
There is so much noise around earnings that you really have to rip apart the financials to understand what the real numbers are.
Lou Simpson
A lot of people don’t have the patience or temperament to really be investors.
Lou Simpson
In general, people are just churning their portfolios.
Lou Simpson
Investors are going to make out a whole lot better if their whole emphasis is on owning businesses and having a reasonable time horizon.
Lou Simpson
[In 2001 at the age of 64.] I don’t know what I’d do with myself if I retired.
Lou Simpson
[At age 74.] I would probably drive myself crazy… if I really retired…
Lou Simpson
There are no secrets – or surprises, in the way we do things.
Lou Simpson
Invest in value stocks.
Lou Simpson
Invest in what others don’t know…
Lou Simpson
Health and age do not slow Charlie [Munger] down at all.
Lou Simpson
You want in a group of people someone who points out that the emperor has no clothes.
Lou Simpson
Does management have a substantial stake in the stock of the company?
Lou Simpson
Is management straightforward in dealings with the owners?
Lou Simpson
Is management willing to divest unprofitable operations?
Lou Simpson
Does management use excess cash to repurchase shares?
Lou Simpson
One of the things I’ve learned, is that you cannot will the market to do what you want it to do.
Lou Simpson
Over time, the market is ultimately rational, or at least somewhat rational.
Lou Simpson
Management will present the positive side. It’s harder to get people who will point out the pitfalls, risks…
Lou Simpson
[In January 2011 at the age of 74.] I did retire for a day. [He then realized.] I would probably drive myself crazy and my wife crazy if I really retired and didn’t do anything.
Lou Simpson
[In January 2011 on his new business SQ Advisors charging a 1 percent management fee and no performance fee. Compared to hedge fund managers historically charging 2 percent of assets and 20 percent of investment profits.] This business is not being run to maximize income. One of our prime thoughts was to try to help people.
Lou Simpson
[On ever becoming Warren Buffett’s successor.] I don’t see myself that way at all. I don’t even think about it. I see myself as a potential backup. Warren is Berkshire, and as long as Warren is around he will be running Berkshire. He has dedicated his life to it and he’s the best person to do it.
Lou Simpson
[On becoming Berkshire Hathaway’s backup asset allocator.] I would do it out of a sense of responsibility to the people who treated me well.
Lou Simpson
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