The model I like to sort of simplify the notion of what goes on in a market for common stocks is the pari-mutuel system at the racetrack. If you stop to think about it, a pari-mutuel system is a market. Everybody goes there and bets and the odds change based on what's bet. That's what happens in the stock market.

I think I've been in the top 5% of my age cohort all my life in understanding the power of incentives, and all my life I've underestimated it.

It's human nature to extrapolate the recent past into the future, but it's terrible that managements go along with this.

For years I have read the morning paper and harrumphed. There's a lot to harrumph about now.

We only want what success we can get despite encouraging others to share our general view about reality.

We have a history when things are really horrible of wading in when no one else will.

A banker who is allowed to borrow money at X and loan it out at X plus Y will just go crazy and do too much of it if the civilization doesn't have rules that prevent it.