The Sages Quotes

“LTCM is now a classic case of “fat tails” in finance. Portfolio math mimics diffusion physics—a scattergram of the outcomes from trillions of small random movements maps smoothly onto a bell curve. In well-behaved markets, finance looks much the same. But markets are rarely well-behaved for long, and big deviations from the norm happen very frequently in finance—the finance bell curve, that is, has fat tails. When Russia defaulted on its sovereign bonds in 1998, it was a fat tail for LTCM, and it was on the wrong side of the trade, with very heavy leverage.”
― Charles R. Morris, The Sages: Warren Buffett, George Soros, Paul Volcker, and the Maelstrom of Markets

“Be fearful when others are greedy, and greedy when others are fearful.”6”
― Charles R. Morris, The Sages: Warren Buffett, George Soros, Paul Volcker, and the Maelstrom of Markets