I spent quite a bit of time studying the investment philosophy of this market writer and thinker, and honestly, his quotes still resonate today. What struck me is how relevant his observations on human behavior remain.

The first thing he says is that people make mistakes not because they lack understanding, but because they already believe they know everything. I see this every day in the markets — arrogance kills portfolios. And this is closely related to his concept of reflexivity: market prices always distort fundamentals, and current expectations actually shape future events. It’s a self-reinforcing cycle.

Regarding risk management, it’s clear: yes, take risks, but never risk your entire fortune. It’s common sense, but so few people follow it. He also says that if you’re not prepared to face pain, then leave. It’s brutal but honest. And when things go wrong — and they will — true strength is in getting back up stronger after each failure.

What really interests me in his thinking is his view of the global economy as a series of illusions. The secret, according to him, is to recognize the illusion, get involved in it, then leave before everyone else discovers the truth. It’s essentially market timing, but expressed in a more philosophical way.

He also talks about how cycles form — everything always goes up and down. The real skill is recognizing the trend change, the turning point. And when you look at his writings on credit and collateral, you see how he anticipated crises: the buildup of liabilities, the appreciation effect on collateral, then the inevitable reversal.

One point I really like: admitting a mistake is something to be proud of. Many traders could learn that. He adds that to succeed, you need enough free time — no need to trade frantically, you need time to think.

And then there’s this quote that almost sums it all up: the important thing isn’t whether your judgment is wrong or right, it’s to maximize your power when you’re right. It shifts the perspective — it’s not just about being right, it’s about profiting fully from it.

Honestly, rereading these quotes from this great market thinker reminds me why psychology and philosophy matter as much as technical analysis. Markets aren’t just numbers; they’re amplified human behavior.