Fundamental analysis seeks to establish how underlying values are reflected in stock prices, whereas the theory of reflexivity shows how stock prices can influence underlying values

The main enemy of the open society, I believe, is no longer the communist but the capitalist threat.

Giving government aid to a bank basically transforms it into a utility. The huge salaries in this sector are only a symptom of a more profound misalignment. The profitability of the finance industry has been excessive. [...] That was absurd.

Making an investment decision is like formulating a scientific hypothesis and submitting it to a practical test.

There is always a divergence between our perception and what actually exists.

America needs to follow the policies it has introduced in Germany. We have to go through a certain de-Nazification process.

I would be lying, however, if I claimed that I could always formulate worthwhile hypotheses on the basis of my theoretical framework. Sometimes there were no reflexive processes to be found; sometimes I failed to find them; and, what was the most painful of all, sometimes I got them wrong. One way or another, I often invested without a worthwhile hypothesis and my activities were not very different from a random walk.