The loss was not bad luck. It was bad analysis. David Einhorn More Quotes by David Einhorn More Quotes From David Einhorn As an investor my job is to figure out what will happen rather than what should happen. David Einhorn figures should jobs One of the best investors around, Joel Greenblatt, has written a popular, charming and funny book about investing in great companies at low P/E multiples. To simplify an already simple book, great companies are generally measured as companies that can generate lots of profit without requiring a lot of capital. This means that they have high ROEs. David Einhorn simple mean book In the real world, illiquid assets carry a discount. David Einhorn assets real world You have a certain set of facts and you are looking for situations where you have an edge, whether the edge is psychological or statistical. David Einhorn certain psychological facts What do you call a stock that's down 90%? A stock that was down 80% and then got cut in half. David Einhorn cutting half When people ask me what I do for a living, I generally tell them 'I run a hedge fund.' The majority give me a strange look, so I quickly add, 'I am a money manager.' When the strange look persists, as it often does, I correct it to simply, 'I'm an investor.' Everyone knows what that is. David Einhorn running giving people When you leave a good job to go off on your own and don't expect to make money for a while, you name the firm whatever your wife says you should. David Einhorn wife names jobs A 99% Value-at-Risk calculation does not evaluate what happens in the last one percent... This is like an airbag that works all the time, except when you have a car accident. David Einhorn car risk doe I will keep a substantial long exposure to gold -- which serves as a Jelly Donut antidote for my portfolio. While I'd love for our leaders to adopt sensible policies that would reduce the tail risks so that I could sell our gold, one nice thing about gold is that it doesn't even have quarterly conference calls. David Einhorn nice leader long What is uncertain is how much further the bubble can expand, and what might pop it. David Einhorn pops uncertain might Microsoft has one more shot at a role in smart phone software through its deployment on Nokia phones. Nokia is still the global market share leader in cell phones. Maybe it will work out, but this is hard to envision great success in the area coming on the heels of so much disappointment in missed opportunity in this important and visible category. David Einhorn smart disappointment opportunity Ive got a fantasy-baseball team with my brother. But I have to admit, he does all the work. David Einhorn team brother baseball Microsoft could help Facebook with one of the biggest challenges, namely monetizing its traffic without reducing the user's experience. It's obvious that Microsoft needs traffic and Facebook needs search. David Einhorn microsoft challenges needs Neither has consumer-facing businesses, and both have terrible news. AerCap operates in a growing industry with a favorable outlook, we think the market has it wrong. David Einhorn money We think the market has this wrong. David Einhorn money Pioneer is burning cash and its reserves are not growing. David Einhorn company-news We call it the motherfracker. David Einhorn company-news The investing world is a little bit more multidimensional than poker. David Einhorn than little more world Texas hold 'em is all about folding and waiting for that time that comes up every hour or two where you actually have an advantage and you can press it. David Einhorn you waiting time two Investing in a poker game and investing in stocks, at least the way I do it, it's a very similar skillset. David Einhorn poker game investing way
