A Quote by William Eckhardt
If a betting game among a certain number of participants I played long enough, eventually one player will have all the money. If there is any skill involved, it will accelerate the process of concentrating all the stakes in a few hands. Something like this happens in the market. There is a persistent overall tendency for equity to flow from the many to the few. In the long run, the majority loses. The implication for the trader is that to win you have to act like the minority. If you bring normal human habits and tendencies to trading, you'll gravitate toward the majority and inevitably lose.
Quote Topics
Accelerate
Act
Among
Any
Betting
Bring
Certain
Concentrating
Enough
Equity
Eventually
Few
Flow
Game
Gravitate
Habits
Hands
Happens
Human
Implication
Inevitably
Involved
Like
Long
Long Run
Lose
Loses
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Many
Market
Minority
Money
Normal
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Overall
Participants
Persistent
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Run
Skill
Something
Stakes
Tendencies
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Will
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One of the great things about a free market is that it's inherently and indefatigably Darwinistic. Left to its own devices, a free market will eventually weed out the stupid from both 'ends' of the food chain otherwise described as supply and demand. As money is liberated from the hands of the stupid, those who would sell products or services to the stupid will eventually lose their share of the marketplace. Devoid of any 'benevolent' interference from government, the process is gloriously relentless, and cannot help but yield a successively smarter class of participants.
In the long run even the most despotic governments with all their brutality and cruelty are no match for ideas. Eventually the ideology that has won the support of the majority will prevail and cut the ground from under the tyrant's feet. Then the oppressed many will rise in rebellion and overthrow their masters.
We must think of human progress, not as of something going on in the race in general, but as something going on in a small minority, perpetually beleaguered in a few walled towns. Now and then the horde of barbarians outside breaks through, and we have an armed effort to halt the process. That is, we have a Reformation, a French Revolution, a war for democracy, a Great Awakening. The minority is decimated and driven to cover. But a few survive- and a few are enough to carry on.
You would have to be very optimistic to think that any of your books will be among the books that survive in the very long run. I think if a writer is lucky enough to still have a few books around after he's gone, a few that are still being read, then he's accomplished quite a lot.
If you see a market that has slow and steady growth long enough, you'll start to front-run it, and that slow and steady growth will start turning into steeper growth, and that will accelerate the process.
In the long run, a portfolio of well chosen stocks and/or equity mutual funds will always outperform a portfolio of bonds or a money-market account. In the long run, a portfolio of poorly chosen stocks won't outperform the money left under the mattress.
... the cooperative forces are biologically the more important and vital. The balance between the cooperative and altruistic tendencies and those which are disoperative and egoistic is relatively close. Under many conditions the cooperative forces lose, In the long run, however, the group centered, more altruistic drives are slightly stronger. ... human altruistic drives are as firmly based on an animal ancestry as is man himself. Our tendencies toward goodness... are as innate as our tendencies toward intelligence; we could do well with more of both.
I know of a few multimillionaires who started trading with inherited wealth. In each case, they lost it all because they didn't feel the pain when they were losing. In those formative first few years of trading, they felt they could afford to lose. You're much better off going into the market on a shoestring, feeling that you can't afford to lose. I'd rather bet on somebody starting out with a few thousand dollars than on somebody who came in with millions.
Without the values at the core of Christianity and other world religions, without moral norms that have been shaped over millennia, people will inevitably lose their human dignity. One must respect every minority’s right to be different, but the rights of the majority must not be put into question.
Well, my personal mission statement is that we want marriage equality in all 50 states. We want it not to be a state-by-state issue. We don't want it to be something the majority is voting on. I don't think the civil rights of any minority should be in the hands of any majority.
People, a lot of times, don't like what's different. When it's something different out there, the majority of people will be like 'aww, that's wack!' but if it's regular, plain or a straight through flow, it's easier for them to adapt to, because everyone likes the normal.
If you have money draining out of the public equity markets, that inevitably affects the private equity market. They cannot exist going in different directions because somehow that will rent the fabric of the universe. It's just not permitted that that happens. Obviously there can be anomalies for brief periods of time but it just can't happen forever.
Many in local government will ask why should only a few areas have the freedoms and benefits of Enterprise Zone status while the majority lose out?
The deep waters of time will flow over us: only a few men of genius will lift a head above the surface, and though doomed eventually to pass into the same silence, will fight against oblivion and for a long time hold their own.
The one who doesn't fall doesn't stand up. It happens that I was made kind of an idol. Everybody loses. That happens. I'm a normal human being, as are all of us. If it is God's will, the next fight I'll win... No pressure at all. There is some relief because tomorrow I will go back home.
It is only because the majority opinion will always be opposed by some that our knowledge and understanding progress. In the process by which opinion is formed, it is very probable that, by the time any view becomes a majority view, it is no longer the best view: somebody will already have advanced beyond the point which the majority have reached. It is because we do not yet know which of the many competing new opinions will prove itself the best that we wait until it has gained sufficient support.
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