Steven Romick Quotes
104 Steven Romick Quotes (FPA Funds)
1 2 3
[In 2010.] I think that in the money management business, knowledge is cumulative… one should improve the longer one is in the business.
Steven Romick
Do enough work so that you can take advantage of that opportunity when you see it…
Steven Romick
We are value investors because it makes sense to us, fits our risk-averse personalities, and appeals to our sense of intellectual honesty. We believe that value investing is the best means (that we are aware of) to preserve capital and to continue to provide adequate growth over the long term.
Steven Romick
[In June 2006.] I'm not looking for a 1973-74 bear market. I'm not smart enough to try to predict how Jupiter is going to come in line with Mars and whether the moon is going to be in the seventh house, but I do know there is a lot of risk in the system: The consumer makes us nervous.
Steven Romick
[In June 2006.] We are on the verge of what could be one of the biggest consumer slowdowns we have seen since the Great Depression. I'm not saying we'll have a depression, but it will be a deep consumer slowdown. It could be this year, next year, five years from now, eight years from now, whenever, but there is just too much built up in the system.
Steven Romick
[In November 2010.] Volatility is more a measure of opportunity than risk. It lets me act on the visceral reactions of others. Value is the result of panic selling - irrational, illogical selling.
Steven Romick
[In August 2011.] When we look at a business, we look for companies to make good decisions for the long term, even if it negatively impacts the short term.
Steven Romick
[In August 2011.] We wouldn't tell our investors to put all their money in the fund, but we invest as if they do.
Steven Romick
[In March 1997.] I'm a value investor looking for value in all parts of a company's capital structure - common, preferred stock, convertible bonds, public debt and bank debt. By having such a broad charter, I hope to get stock-like returns while taking less risk.
Steven Romick
[In March 1997.] I want to buy companies that are cheap on an absolute basis - to buy growing companies selling at less than private market value. And, to me, ‘private market value’ isn't just what somebody is going to pay for the company in the market, but what a rational buyer would pay.
Steven Romick
[In March 1997.] You can find a lot of companies that, over different periods of time, people pay ridiculous prices for…
Steven Romick
[In March 1997.] I tend to stay away from the deep cyclicals.
Steven Romick
[In August 1998.] Value stocks generally have some sort of warts on them. People don’t want to have anything to do with something that has warts, that is ugly.
Steven Romick
[In December 1998.] When the tide goes out on your markets, there's nothing you can do. But when small-cap stocks come back, I'll be fine.
Steven Romick
[In March 2003.] In every case of speculative excess in the past, we've always had a point of overcorrection.
Steven Romick
[In March 2003.] This is a different kind of recession than we've ever experienced before. The recessions of the past century have all been consumer-led. This recession has been led by capital spending and so the corporations have to help get us out because the consumer never gave up.
Steven Romick
[In March 2003.] The contrarian in me says: ‘Watch out, be careful.’
Steven Romick
[In March 2003.] You can lose 50% of a stock, but then you can also see it double or triple from there. That's a lot harder to do with bonds. If you lose 15% on a government bond if interest rates go up, it's a lot harder to get that money back.
Steven Romick
[In March 2003.] The economy won't be dead forever.
Steven Romick
[In March 2003 on American Capital Strategies.] ‘Our continuing access to capital demonstrates that our assets are strong with attractive stable margins.’ So because they can access a bunch of people who are seduced by the high yield and get them to buy shares, because they can raise money for somebody, it means their assets are strong? I don't get the connection.
Steven Romick
[In November 2003 on why he was 30% in cash.] Right now, we are just not finding many bargains. Holding cash is the same thing as saying: ‘I expect better opportunities down the road.’
Steven Romick
[In April 2004.] To be fully invested in this environment is to say that the reward that awaits is worth the risk assumed. We feel a little like Indiana Jones in a dark, abandoned temple, unsure when a big rock might come rolling our way. Maybe he had more confidence in the treasure that lay hidden within.
Steven Romick
[In April 2004.] Show us an asset class or industry group that is out of favor. We know of a couple: the U.S. dollar and cash…
Steven Romick
[In April 2004.] It is not always so easy to sell a stock at the same time you wish to buy a stock, especially if you traffic in less liquid investments as is frequently the case with small-and mid-cap stocks.
Steven Romick
[In June 2006.] I'm good, for a frustrated investor. This isn't a target-rich environment… I'm not pessimistic, either. There is just not a lot to do right now.
Steven Romick
[In June 2006.] There's a five-month supply of housing inventory for sale. There are too many speculators in the housing market.
Steven Romick
[In June 2006.] I don't think it is expensive. I don't think it is cheap. But we're not finding much that meets our risk/reward parameters.
Steven Romick
[In June 2006.] It's become a relative-value game and we are not relative-value investors. We are absolute-value investors.
Steven Romick
[In June 2006.] The companies I usually invest in trade at a sizable discount to their intrinsic value. We expect them to show earnings growth and, as a result, valuation expansion. Today, those companies are harder to find. I'm not really incentivized to actively deploy capital and buy stocks when I have Treasuries yielding 5%.
Steven Romick
[In June 2006.] I can get a better rate of return from Wal-Mart than the market, without a lot of risk. I view Wal-Mart as an infinite-duration bond with a rising coupon. It is not going to be a home-run kind of stock.
Steven Romick
[In June 2006.] I've never seen plant managers as closely tied to the profitability of their plants as I have seen with Magna International… at four times Ebitda, it is a very inexpensive business.
Steven Romick
[In June 2006.] Investors in the auto industry are making a mistake. They see light at the end of the tunnel. GM has run up because people think things are going to turn around. But the light at the end of the tunnel is the light of an oncoming train, not sunlight. U.S. sales of 17 million cars and 18 million in Europe is not a sustainable number. I Those are good-economy numbers. I would argue those auto sales will drop down dramatically, and wouldn't be surprised to see a 10% drop, in a recession. At that point, I hope to own a lot of these auto suppliers.
Steven Romick
[In May 2008.] To ignore the crisis of confidence in the world today is the same as investing butt-naked – drafty, and potentially embarrassing.
Steven Romick
[In May 2008.] We have met few claiming to invest for the long term, who have also proven to have the stomach to handle the downside volatility that brings prices lower than you ever thought possible.
Steven Romick
[In May 2008.] Future portfolio returns will be dictated by as much of what you do not own, as by what you do.
Steven Romick
[In May 2008.] From 1989 to 2003, Japan’s benchmark Nikkei index declined 80%. On the way down, Japanese investors saw eight rallies of more than 20%. In three of those instances, the Nikkei increased more than 40%. And yet, thirteen years later, the Nikkei sat at just 20% of its peak value. We are not projecting such a prospective decline in U.S. stocks. The Nasdaq is already more than 40% off its all-time high. The Nikkei experience of the last decade certainly reflects what a bumpy, secular bear market can look like. We do expect to see some dramatic, but ultimately ephemeral rallies in U.S. stock indices over the next few years but believe that U.S. market returns will end up in the mid-single-digit range over the next decade.
Steven Romick
[In May 2008.] We do not see how we can have hit bottom when companies still
haven’t come clean. Take Lehman Brothers’ persistently generous interpretation of
GAAP accounting standards as an example…
Steven Romick
[In September 2008.] In a free market economy, you cannot expect to reap untoward benefits in the good times without paying the price in the bad times.
Steven Romick
[In September 2008.] We must have bankruptcies to help the system in its realignment, and for that we must experience short-term pain for the long-term gain.
Steven Romick
[In September 2008.] Fewer jobs = less income = fewer people that qualify for a loan.
Steven Romick
1 2 3
Return from Steven Romick Quotes to
Quoteswise.com