Value investing is the one form of investing that puts risk management at the very heart of the approach. However, you will have to rethink the notion of risk. You will learn to think of risk as a permanent loss of capital, not random fluctuations. You will also learn to understand the trinity of sources that compose this risk: valuation, earnings and balance sheets.

– James Montier

Talent x effort = skill. Skill x effort = achievement. Without effort, your talent is nothing more than your unmet potential. Without effort, your skill is nothing more than what you could have done but didn’t.

– Angela Duckworth, Grit

Iron rusts from disuse; stagnant water loses its purity and in cold weather becomes frozen; even so does inaction sap the vigor of the mind.

– Leonardo da Vinci, Notebooks

If you only wished to be happy, this could be easily accomplished; but we wish to be happier than other people, and this is always difficult, for we believe others to be happier than they are.

– Montesquieu, Mes Pensées

We must expose our children to adversity even if we have to purchase it for them.

– Rakesh Jhunjhunwala

You can write a narrative in your head, and spin yourself down a negative path, and beat yourself up and second guess. But what’s true is you made what you thought was the best decision in the moment. Then, you leave it behind. There’s no going back. Everyone makes mistakes. Everyone makes good decisions, bad decisions, or they just didn’t work. For me, it’s: “Learn the lesson. Leave the event.”

– Stephen Vogt

If people can’t think clearly about anything that has become part of their identity, then all other things being equal, the best plan is to let as few things into your identity as possible.

– Paul Graham

If you really want to improve the quality of decision-making, use algorithms… wherever you can. If you can replace judgment by rules and algorithms, they’ll do better.

– Daniel Kahneman

A frog’s brain is set up to recognize food as moving objects that are oblong in shape. So if we take a frog’s normal food — flies — paralyze them with a little chloroform and put them in front of the frog, it will not notice them or try to eat them. It will starve in front of its food! But if we throw little rectangular pieces of cardboard at the frog it will eat them until it is stuffed! The frog only sees a little of the world we see, but it still thinks it perceives the whole world. Now, of course, we are not like frogs! Or are we?

– Alan Kay