Some people claim that they predicted a downturn, but they forecast a downturn every day, and finally, one day, they are right. Even a broken clock is right twice a day.

In a bubble, people are ready to pay any price without any regard to intrinsic value or any value whatsoever because they believe they can always sell it for a profit.

The discounted cash flow model of valuation is the most helpful tool for separating intrinsic and extrinsic values.

People tend to weigh their most recent experiences more than the affairs of the past.

Cash in your bank account is as safe as the creditworthiness of your banker. No more, no less.

Markets are not efficient enough; that’s why we have market peaks and bottoms now and then.

Bubbles feel like a party.

Excess liquidity is the leading source of all bubbles.

Activities of capital markets do not create or abolish money; governments do.

In a bubble, people demonstrate some sort of cult-like behavior. They defend their positions, not by economic logic, but by force. They do this by calling those whodisagree with them dirty, and mocking people who give them prudent advice.