In our experience, what we have found is the rare commodity is a good management team. And good management teams manage through good and bad cycles and manage to grow their business over a long period of time.
Warren StephensRead
It's difficult to make your clients understand that there are certain days that the market will go up or down 2%, and it's basically driven by algorithms talking to algorithms. There's no real rhyme or reason for that. So it's difficult. We just try to preach long-term investing and staying the course.
Interpretation
What this quote means
Market fluctuations are often unpredictable, influenced by algorithms rather than human reasoning.
Warren Stephens highlights the challenge of conveying to clients the unpredictable nature of the stock market, which can experience significant fluctuations driven by algorithmic trading. He emphasizes the importance of focusing on long-term investment strategies and maintaining a steady approach amid market volatility, as short-term changes can lack fundamental justification.
Themes
MarketInvestingClientsAlgorithmsLong-Term
In practice
Example use cases
Use this quote in a seminar on investment strategies to emphasize the importance of long-term thinking.
More from Warren Stephens
All quotes →Owning equities is an essential part of anyone's portfolio. You just can't ignore it over time. It's going to add the real pop to anyone's overall performance.
Warren StephensRead
Similar quotes
There is always something to worry about. Avoid weekend thinking and ignoring the latest dire predictions of the newscasters. Sell a stock because the company's fundamentals deteriorate, not because the sky is falling.
Peter LynchRead
Don't invest in what you don't know. Learn first then invest.
Robert KiyosakiRead
You get recessions, you have stock market declines. If you don't understand that's going to happen, then you're not ready, you won't do well in the markets.
Peter LynchRead
Finance is not merely about making money. It's about achieving our deep goals and protecting the fruits of our labor. It's about stewardship and, therefore, about achieving the good society.
Robert J. ShillerRead
Don’t buy luxuries until you’ve built the assets to afford them
Robert KiyosakiRead
Gold is a way of going long on fear, and it has been a pretty good way of going long on fear from time to time. But you really have to hope people become more afraid in a year or two years than they are now. And if they become more afraid you make money, if they become less afraid you lose money, but the gold itself doesn’t produce anything.
Warren BuffettRead