Why is it possible to rescue S&L buccaneers in the early '90s and provide guidance to levered Wall Street investment bankers during the 1998 long-term capital management crisis, yet throw 2 million homeowners to the wolves in 2007? Bill Gross More Quotes by Bill Gross More Quotes From Bill Gross The market can move for irrational reasons, and you have to be prepared for that, ... you need to make big bets when the odds are in your favor -- not big enough to ruin you, but big enough to make a difference. Bill Gross differences odds moving Bond investors are the vampires of the investment world. They love decay, recession - anything that leads to low inflation and the protection of the real value of their loans. Bill Gross vampire decay real Finding the best person or the best organization to invest your money is one of the most important financial decisions you'll ever make. Bill Gross important organization decision Do you really like a particular stock? Put 10% or so of your portfolio on it. Make the idea count … Good [investment] ideas should not be diversified away into meaningless oblivion. Bill Gross portfolios oblivion ideas With all this consumer debt, business debt, government debt, smaller movements in interest rates have a magnified effect. a small movement can tip the boat. Bill Gross debt movement government We are witnessing the death of abundance and the borning of austerity, for what may be a long, long time. Bill Gross austerity may long Bonds despite their ridiculous yields will not easily be threatened with a new bear market. Bill Gross ridiculous yield bears You know those adages about smelling the roses and chasing butterflies? The markets are my butterflies and my roses. Bill Gross chasing-butterflies butterfly rose Whenever I read the newspaper, I say to myself, 'At least my wife loves me.' Bill Gross newspapers wives-love wife I have a 41-year track record of investing excellence… what do you have? Bill Gross track excellence years Both from the standpoint of stocks and bonds, an investor wants to go where the growth is. Bill Gross standpoint growth want Human nature means that institutions at some point lose their sense of mission. That sense of vulnerability drives Pimco. Bill Gross institutions human-nature mean Ex-Fidelity mutual fund manager Peter Lynch was certainly brilliant in one respect: he knew to get out when the gettin was good. Bill Gross mutual-fund fidelity brilliant In questioning initially whether I am a great investor, I open the door to question whether other similarly esteemed public icons like Bill Miller are as well. It seems, perhaps, that the longer and longer you keep at it in this business the more and more time you have to expose your Achilles heel - wherever and whatever that might be. Bill Gross icons doors might When the tide goes out, you get to see who's swimming naked. PIMCO has had its bathing suit on for a long time Bill Gross naked swimming long People have different impressions of themselves, and where reality lies is somewhere in between. Bill Gross lying reality people Companies typically borrow money at less than their return on equity and therefore compound their return at the expense of lenders. Bill Gross equity expenses return Dollar depreciation leads to higher inflation and ultimately forces foreign creditors to question their rationale and indeed their sanity for continuing purchases of U.S. Treasuries. Bill Gross creditors sanity dollars Bond investors want growth much like equity investors, and to the extent that too much austerity leads to recession or stagnation then credit spreads widen out - even if a country can print its own currency and write its own cheques. Bill Gross growth writing country Slow growth and inflation have a tendency to accompany large deficits and increasing debt as a percentage of GDP. Bill Gross debt gdp growth
