180 Quotes by Naved Abdali

It is a common misconception that if you diversify, you don’t need to learn anything. Just buy a bunch of stocks, and you will be good. Nothing can be further from the truth.

it is not a calculated risk if you haven’t calculated it.

If your bull case to buy a stock is “a sharp price drop” or "price is going to the moon”, you don’t have a bull case.

A price drop is not an actual risk. The actual risk is not to know the reason why the price was dropped.

If you have invested an equal amount in Apple and 1,000 other companies at their inception and all other companies go bankrupt, you are still in profit. This is the power of unlimited gain possibilities and limited loss.

It is a misconception that diversification will magically reduce the losses. It cannot be far from the truth. Diversification does not reduce losses but provides a weighted average return of your portfolio.

No amount of diversification can replace investment research. If you want to invest, you have to learn.

Diversification does not guarantee protection from losses. It provides a weighted-average return of the portfolio.

The funny thing about using the last transaction price as a proxy for the fair value is; that even the two people, buyer, and seller, who caused the transaction do not agree that the transaction price is the fair value of that stock. They have opposite views about the real value.