"After purchasing six or eight stocks in different industries, the benefit of adding even more stocks to your portfolio in an effort to decrease risk is small."
"There was nothing wrong with Denver and plenty right about it," he said. "The city was just extremely overbuilt, and the bargain prices reflected the complete lack of investor confidence."
"There is one big difference," Steve said. "In real estate, we were the managers. We controlled our fate more than you do when investing in a public company. We made the decisions about deploying capital. We decided whether to put a new roof on a warehouse or retail building or return cash to our investors."
"It's been a broadly strong market," he says. "We think it's very hard to find value now."
"History shows over and over again that individual investors usually become most active near market peaks," Steve says. Not only are they trading more, but also, they are borrowing more on margin to buy stocks.
"The bottom line is that to be a good investor, you need to not only buy when it is emotionally the hardest, and sell when emotionally it is the hardest, but also do nothing while waiting for market extremes to offer better opportunities. Sounds so easy, but it is so hard. You often don't know you have been right until months or even years later...As we continue to preach tirelessly, successful investing is not about beating the market every time, it's about beating the market over time."