When excesses such as lax lending standards become widespread and persist for some time, people are lulled into a false sense of security, creating an even more dangerous situation. In some cases, excesses migrate beyond regional or national borders, raising the ante for investors and governments. These excesses will eventually end, triggering a crisis at least in proportion to the degree of the excesses. Correlations between asset classes may be surprisingly high when leverage rapidly unwinds.

I think markets will never be efficient because of human nature.

Value investors should completely exit a security by the time it reaches full value; owning overvalued securities is the realm of speculators.

It's incredibly important to note that when you don't allow failure, you get more failure.

You probably would not choose to dine at a restaurant whose chef always ate elsewhere. I do eat my own cooking, and I don't "dine out" when it comes to investing.

Most investors are primarily oriented toward return, how much they can make and pay little attention to risk, how much they can lose.

The government can indefinitely control both short-term and long-term interest rates.