Academics From The United States

"As we shall see in this book's chapters, traditional societies are far more diverse in many of their cultural practices than are modern industrial societies. [...] Yet psychologists base most of their generalizations about human nature on studies of our own narrow and atypical slice of human diversity. [...] That is, as social scientists Joseph Henrich, Steven Heine, and Ara Norenzayan express it, most of our understanding of human psychology is based on subjects who may be described by the acronym WEIRD: from Western, educated, industrialized, rich, and democratic societies. [...] Hence if we wish to generalize about human nature, we need to broaden greatly our study sample from the usual WEIRD subjects [...] to the whole range of traditional societies."

"My hope in writing this book has been that enough people will choose to profit from that opportunity to make a difference."

"Remember that impact is the product of two factors: population multiplied times impact per person."

"What are the choices that we must make if we are now to succeed, and not to fail? [...] Two types of choices seem to me to have been crucial to tipping their outcomes towards success or failure: long-term planning, and willingness to reconsider core values. On reflection, we can also recognize the crucial role of these same two choices for the outcomes of our individual lives. One of those choices has depended on the courage to practice long-term thinking, and to make bold, courageous, anticipatory decisions at a time when problems have become perceptible but before they have reached crisis proportions. [...] The other crucial choice illuminated by the past involves the courage to make painful decisions about values. Which of the values that formerly served a society well can continue to be maintained under new changed circumstances? Which of these treasured values must instead be jettisoned and replaced with different approaches?"

"Because we are the cause of our environmental problems, we are the ones in control of them, and we can choose or not choose to stop causing them and start solving them. The future is up for grabs, lying in our own hands. We don’t need new technologies to solve our problems; while new technologies can make some contribution, for the most part we "just" need the political will to apply solutions already available."

"If the Easter Islanders couldn't solve their milder local problems in the past, how can the modern world hope to solve its big global problems? People who get depressed at such thoughts often then ask me, “Jared, are you optimistic or pessimistic about the world’s future?” I answer, “I am a cautious optimist.” By that, I mean that, on the one hand, I acknowledge the seriousness of the problems facing us. If we don’t make a determined effort to solve them, and if we don’t succeed at that effort, the world as a whole within the next few decades will face a declining standard of living, or perhaps something worse. That’s the reason why I decided to devote most of my career efforts at this stage of my life to convincing people that our problems have to be taken seriously and won’t go away otherwise. On the other hand, we shall be able to solve our problems – if we choose to do so."

"In fact, one of the main lesson to be learned from the collapses of the Maya, Anasazi, Easter Islanders, and those other past societies (as well as from the recent collapse of the Soviet Union) is that a society's steep decline may begin only a decade or two after the society reaches its peak numbers, wealth, and power. [...] The reason is simple: maximum population, wealth, resource consumption, and waste production mean maximum environmental impact, approaching the limit where impact outstrips resources. On reflection, it's no surprise that declines of societies tend to follow swiftly on their peaks."

""The environment has to be balanced against the economy." This quote portrays environmental concerns as a luxury, views measures to solve environmental problems as incurring a net cost, and considers leaving environmental problems unsolved to be a money-saving device. This one-liner puts the truth exactly backwards. Environmental messes cost us huge sums of money both in the short run and in the long run; cleaning up or preventing those messes saves us huge sums in the long run, and often in the short run as well. In caring for the health of our surroundings, just as of our bodies, it is cheaper and preferable to avoid getting sick than to try to cure illnesses after they have developed."

"Thus, because we are rapidly advancing along this non-sustainable course, the world's environmental problems will get resolved, in one way or another, within the lifetimes of the children and young adults alive today The only question is whether they will become resolved in pleasant ways of our own choice, or in unpleasant ways not of our choice, such as warfare, genocide, starvation, disease epidemics, and collapses of societies. While all of those grim phenomena have been endemic to humanity throughout our history, their frequency increases with environmental degradation, population pressure, and the resulting poverty and political instability."

"Those numbers may not sound like a big deal until one reflects that average global temperatures were "only" 5 degrees cooler at the height of the last Ice Age."

"Businesses have changed when the public came to expect and require different behavior, to reward businesses for behavior that the public wanted, and to make things difficult for businesses practising behaviors that the public didn't want. I predict that in the future, just as in the past, changes in public attitudes will be essential for changes in businesses' environmental practices."

"My views may seem to ignore a moral imperative that businesses should follow virtuous principles, whether or not it is most profitable for them to do so. Instead I prefer to recognize that, throughout human history, [...] government regulation has arisen precisely because it was found to be necessary for the enforcement of moral principles. Invocation of moral principles is a necessary first step for eliciting virtuous behavior, but that alone is not a sufficient step."

"Religious values tend to be especially deeply held and hence frequent cause of disastrous behaviour. [...] The modern world provides us with abundant secular examples of admirable values to which we cling under conditions where those values no longer make sense [...] It appears to me that much of the rigid opposition to environmental concerns in the First World nowadays involves values acquired early in life and never again reexamined [...]."

"[..] the values to which people cling most stubbornly under inappropriate conditions are those values that were previously the source of their greatest triumphs."

"Two types of choices seem to me to have been crucial in tipping their outcomes towards success or failure: long-term planning, and willingness to reconsider core values. On reflection, we can also recognize the crucial role of these same two choices for the outcomes of our individual lives."

"People often ask, "What is the single most important environmental/population problem facing the world today?" A flip answer would be, "The single most important problem is our misguided focus on identifying the single most important problem!""

"History, as well as life itself, is complicated; neither life nor history is an enterprise for those who seek simplicity and consistency."

"Physiologists and molecular biologists regularly fall into the trap of overlooking this distinction, which is fundamental to biology, history, and human behavior. Physiology and molecular biology can do no more than identify proximate mechanisms; only evolutionary biology can provide ultimate causal explanations."

"Behavior evolves through natural selection, just as anatomy does. Hence if sex is enjoyable, natural selection must have been responsible for that outcome."

"Perhaps our greatest distinction as a species is our capacity, unique among animals, to make counter-evolutionary choices."

"Our sex is ultimately laid down by our genes."

"Though seemingly remote from human sexuality, shorebird sexuality is instructive because it illustrates the main message of this book: a species’ sexuality is molded by other aspects of the species’ biology. It’s easier for us to acknowledge this conclusion about shorebirds, to which we don’t apply moral standards, than about ourselves."

"In particular, while natural selection favors both males and females that leave many offspring, the best strategy for doing so may be different for fathers and mothers. That generates a built-in conflict between the parents, a conclusion that all too many humans don’t need scientists to reveal to them. We make jokes about the battle of the sexes, but the battle is neither a joke nor an aberrant accident of how individual fathers or mothers behave on particular occasions. It is indeed perfectly true that behavior that is in a male’s genetic interests may not necessarily be in the interests of his female co-parent, and vice versa. That cruel fact is one of the fundamental causes of human misery."

"How can we explain simultaneously this general pattern of female parental care and also its numerous exceptions? The answer comes from the realization that genes for behavior, as well as for malaria resistance and teeth, are subject to natural selection."

"Both a priori reasoning and experience teach us that as as these funds grow larger the geometrical rate of growth by compound interest ultimately defeats itself."

"Graham's approach is cogent, well argued and has a substantial following among successful investors. There is some modern evidence to support him. It may well be worthwhile to sharpen his methods along modern lines and to test them thoroughly."

"Graham strongly felt that market prices could be considerably out of line with values. The reason for this discrepancy he took to be psychological. ...[T]he overall level of the market could go to extremes in either direction, as optimism or pessimism holds sway. ...[F]avored stocks would sell at unduly high prices, while unpopular stocks would sell at unduly low prices."

"There are perhaps four points where Graham departs radically from conventional practice: ...The "value" ...is not a short-term price forecast ...The "value" is a medium-term sustainable value for the firm as on on-going operation. ...The future is estimated conservatively, using realistic estimates of earnings, and prudent multipliers ...[O]nly ...purchase when price is substantially below value, thus using a considerable "margin of safety". The security should be sold when price begins to exceed value by a given proportion. ...[P]articularly at times when the market is low, a sufficiently large number of under-priced securities will exist ...This insight is perhaps his most unusual one. ...[U]nderpriced shares almost disappear when the market is historically high, and reappear when it falls."

"There will continue to be wide discrepancies between price and value in the marketplace, and those who read their Graham and Dodd will continue to prosper."

"[T]he secret has been out for 50 years, ever since Ben Graham and Dave Dodd wrote Security Analysis, yet I have seen no trend toward in... 35 years... There seems to be some perverse human characteristic that likes to make easy things difficult."

"You... have to have the knowledge to... make a very general estimate about the value of the underlying businesses. But you do not cut it close. That is what Ben Graham meant by having a margin of safety."

"Tom [Knapp] was a chemistry major at Princeton before the war; when he came back... he was a beach bum. And then one day he read that Dave Dodd was giving a night course in investments at Columbia. Tom took it on a non-credit basis, and he got so interested... that he enrolled at Columbia Business School where he got the MBA... He took Dodd's course again, and took Ben Graham's course. ...35 years later ...I found him on the beach ...he owns the beach!"

"Ben Graham was a truly formidable mind, and he also had a clarity in writing. And, we've talked over and over again about the power of a few simple ideas thoroughly assimilated. ... that happened with Graham's ideas, which came to me indirectly through Warren — but also some directly from Graham. ... And, by the way, Buffett was the best student Graham had in 30 years of teaching at Columbia. ... Buffett became way better than Graham. That is a natural outcome. ... Newton said that, "If I've seen a little further than other men, it's by standing on the shoulders of giants." ... Warren may have stood on Ben's shoulders, but he ended up seeing farther. And, no doubt, somebody will come along in due course and do a lot better than we have."

"In his first edition of Security Analysis, back in 1933, Graham expressed disdain for Wall Street's near-obsession with earnings in determining the value of a public company. For Graham, book value was a better guide. ...Bill Graham was right. ...We took the largest 1,500 companies... for the 25-year period ended Dec. 31, 1994. ...We calculated returns for the 20% of stocks with the lowest and highest price-to-book ratios. ...[I]t was no contest. ...If you had invested $10,000 in the lowest... it would have returned $364,000... This more than doubled the return of the market as a whole... an equally weighted market index provided... $163,000. ...[S]tocks that sold at the handsomest premiums to book value... ended up with a miserable $92,000, about 55% of the market's return and only one-fourth ...the lowest price-to-book group. ...[E]motion favors the premium priced stocks. They are fashionable. They are hot. ...Emotion overrides logic time after time."

"A story that was passed down from Ben Graham illustrates the lemminglike behavior of the crowd: "Let me tell you the story of the oil prospector who met St. Peter at the Pearly Gates. When told his occupation, St. Peter said, “Oh, I’m really sorry. You seem to meet all the tests to get into heaven. But we’ve got a terrible problem. See that pen over there? That’s where we keep the oil prospectors waiting to get into heaven. And it’s filled—we haven’t got room for even one more.” The oil prospector thought for a minute and said, “Would you mind if I just said four words to those folks?” “I can’t see any harm in that,” said St. Pete. So the old-timer cupped his hands and yelled out, “Oil discovered in hell!” Immediately, the oil prospectors wrenched the lock off the door of the pen and out they flew, flapping their wings as hard as they could for the lower regions. “You know, that’s a pretty good trick,” St. Pete said. “Move in. The place is yours. You’ve got plenty of room.” The old fellow scratched his head and said, “No. If you don’t mind, I think I’ll go along with the rest of ’em. There may be some truth to that rumor after all.""

"[Shorter variant:] In the short run, the market is a voting machine but in the long run, it is a weighing machine."

"In the short-run, the market is a voting machine - reflecting a voter-registration test that requires only money, not intelligence or emotional stability - but in the long-run, the market is a weighing machine."

"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks."

"Do not let anyone else run your business."

"Investment is most intelligent when it is most businesslike."

"Observation over many years has taught us that the chief losses to investors come from the purchase of low-quality securities at times of favorable business conditions."

"Wall Street has a few prudent principles; the trouble is that they are always forgotten when they are most needed."

"Unusually rapid growth cannot keep up forever; when a company has already registered a brilliant expansion, its very increase in size makes a repetition of its achievement more difficult."

"Good management are rarely overcompensated to an extent that makes any significant difference with respect to the stockholder's position. Poor management are always overcompensated, because they are worth less than nothing to the owners."

"Readers of this book, however intelligent and knowing, could scarcely expect to do a better job of portfolio selection than the top analysts of the country. But if it is true that a fairly large segment of the stock market is often discriminated against or entirely neglected in the standard analytical selections, then the intelligent investor may be in a position to profit from the resultant undervaluations."

"The value of the security analyst to the investor depends largely on the investor's own attitude. If the investor asks the analyst the right questions, he is likely to get the right—or at least valuable— answers."

"Nearly everyone interested in common stocks wants to be told by someone else what he thinks the market is going to do. The demand being there, it must be supplied."

"If we assume that there are normal or standard income results to be obtained from investing money in securities, then the role of the adviser can be more readily established. He will use his superior training and experience to protect his clients against mistakes and to make sure that they obtain the results to which their money is entitled."

"Good managements produce a good average market price, and bad managements produce bad market prices."

"The investor would not be far wrong if this motto read more simply: "Never buy a stock immediately after a substantial rise or sell one immediately after a substantial drop"."