James Montier

“The most important part of investing is not what you buy, but how you behave.”

“Risk is not a number — it is a feeling”

“The biggest enemy of investment success is the investor himself.”

“Valuation tells you what to buy; psychology tells you when to buy it.”

“Buying cheap assets feels uncomfortable — that’s why it works.”

“Investment success requires the ability to look wrong for a very long time”

“The most powerful force in finance is mean reversion.”

“Trees don’t grow to the sky, and neither do profit margins”

“What goes up too far almost always comes down.”

“Markets are efficient only if investors are.”

“Incentives matter more than intelligence.”

“Bad incentives create bad outcomes — every time.”

“Bubbles are born from extrapolation.”

“Crowds are not wise — they are emotional.”

“The pain of missing out is greater than the fear of losing”

“Valuation is a terrible timing tool and a wonderful return predictor.”

“In the short run, narratives dominate; in the long run, cash flows do”

“Being early feels exactly like being wrong.”

“Risk is what’s left over when you think you’ve thought of everything.”

“The future will surprise you — plan accordingly”

“Forecasting is useful only if it reminds you of your ignorance.”