It's dangerous to short stocks.

Once you start doing something bad, then it's easy to take the next step - and in the end, you're a moral sewer.

It's not a competency if you don't know the edge of it.

It would be easier to screw up American Express than Coke or Gillette, but it's an immensely strong business.

Invert, always invert.

As I talk about strengths and weaknesses in academic economics, one interesting fact you are entitled to know is that I never took a course in economics. And with this striking lack of credentials, you may wonder why I have the chutzpah to be up here giving this talk. The answer is I have a black belt in chutzpah. I was born with it.

I think the reason why we got into such idiocy in investment management is best illustrated by a story that I tell about the guy who sold fishing tackle. I asked him, "My God, they're purple and green. Do fish really take these lures?" And he said, "Mister, I don't sell to fish." Investment managers are in the position of that fishing tackle salesman.