Quotes About Returns

Higher pricing means that we can sell fewer units—and thus manage fewer customers—and fulfill our dreamlines. It's faster. Higher pricing attracts lower-maintenance customers (better credit, fewer complaints/questions, fewer returns, etc.). It's less headache. This is HUGE. Higher pricing also creates higher profit margins. It's safer.

Back to Tony, "cap the downside" also applies to thinking long-term about fees and middlemen: "If three of my friends [and I] all put aside the same amount of money, and we all get a 7% return, but my buddy's getting fees of 3%, my other buddy's 2%, and I'm 1%, and all three of us put $1 million in or $100,000 . . . the person with 3% of fees ends up with 65% less money [in the long-term]. . . .

First and foremost, there is a difference between being perceived as an expert and being one. In the context of business, the former is what sells product and the latter, relative to your "minimal customer base," is what creates good products and prevents returns.

As legendary hedge fund manager Ray Dalio told Tony Robbins (page 210): "It's almost certain that whatever you're going to put your money in, there will come a day when you will lose 50% to 70%." It pays to remember that if you lose 50%, you need a subsequent 100% return to get back to where you started. That math is tough.

We enter relationships for personal pleasure, self-actualization, and fun. We want low personal cost and high self-defined returns. But God wants high personal cost and high God-defined returns.

Poets, as a class, are business men. Shakespeare describes the poet's eye as rolling in a fine frenzy from heaven to earth, from earth to heaven, and giving to airy nothing a local habitation and a name, but in practice you will find that one corner of that eye is generally glued on the royalty returns.

Shakespeare describes the poet's eye as rolling in a fine frenzy from heaven to earth, from earth to heaven, and giving to airy nothing a local habitation and a name, but in practice you will find that one corner of that eye is generally glued on the royalty returns.

Goals that people set for themselves and that are devoted to attaining mastery are usually healthy. But goals imposed by others--sales targets, quarterly returns, standardized test scores, and so on--can sometimes have dangerous side effects.

Since 1990, we've found that the returns to shareholders in public companies where the founder is still involved are three times higher than in other companies

At KKR, we devote a great deal of time, attention and creativity trying to dissect, understand and anticipate change with the goal of achieving consistently strong returns for our investors.

He had reached the outer limits of what Fun, capital F, could do for him. The cost was way too high, the returns pitifully inadequate.

If it is a rental property, we'll typically keep it fairly neutral. If it's a vacation property, we have a lot more fun and do things a little more edgy and exciting. When we're flipping, we obviously want to make smart decisions and do things that produce great returns.

Our goal is to make General Motors the most valuable automotive company. Clearly, that is having sustainable profitability and driving great returns for our shareholders.

Look: invest in what you understand, what's foreseeably going to offer real value and returns, not necessarily what's trendy.

Only a strong economy can create higher asset values and sustainably good returns for savers.

Investing in early childhood nutrition is a surefire strategy. The returns are incredibly high.

An inverse relationship exists between efficiency in asset pricing and appropriate degree of active management. Passive management strategies suit highly efficient markets, such as U.S. Treasury bonds, where market returns drive results and active management adds little or nothing. Active management strategies fit inefficient markets, such as private equity, where market returns contribute very little to ultimate results and investment selection provides the fundamental source of return.

Capital markets provide three tools for investors to employ in generating investment returns: asset allocation, market timing, and security selection.

Well-constructed academic studies confirm the theoretical premise. Robert Arnott's 2000 examination of U.S. equity mutual-fund returns shows a twenty-year pre-tax deficit of 2.1 percent per year relative to the result achieved by investors in Vanguard's 500 Index Fund. Nearly 80 percent of actively managed funds failed to reach Vanguard's market-mimicking return.

Market participants willing to accept illiquidity achieve a significant edge in seeking high risk-adjusted returns. Because market players routinely overpay for liquidity, serious investors benefit by avoiding overpriced liquid securities and by embracing less liquid alternatives.

Passive market timing consists of inadvertent deviations from long-term targets caused by the action of market forces on the values of a portfolio's various asset classes. Whether caused by an investor's active decision or an investor's passive indifference, market-timing returns result from deviations between hypothetical target portfolio returns and actual portfolio asset class returns.

Cambridge Associates Annual Analysis of College and University Pool Returns.

Junk-bond investors cannot win. When fundamentals improve, stock returns dominate bond returns. When rates decline, noncallable bonds provide superior risk-adjusted returns. When fundamentals deteriorate, junk-bond investors fall along with equity investors.

Within the realm of active equity management, investors inhabit a perverse world where higher fees correspond to lower returns. In the broader universe that includes active and passive management, index funds exhibit a dramatic cost advantage over their actively managed counterparts. Well-informed investors recognize that fund fees matter.