The 70 best phrases of Stanley Druckenmiller
Aug 17, 2022
Stanley Druckenmiller carved out a niche for himself in the demanding world of investing, becoming a world-renowned philanthropist and hedge fund manager. An interesting anecdote is that he was president of Duquesne Capital until 2010, when he decided to close it because he did not have the capacity to grant high returns to his clients.
If you want to know the philosophy of life of this American businessman, this selection of Stanley Druckenmiller best quotes you will be interested
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The most motivating Stanley Druckenmiller phrases
This investor not only leaves us valuable lessons to invest, but not to be afraid of making the decision to withdraw if we know that there is no way to continue. For this reason, we bring this compilation with the best phrases and thoughts of Stanley Druckenmiller.
1. Profits do not move the market in general; is the Federal Reserve Board…
The US Federal Reserve is the one that mainly manages the country's economy.
2. The Fed instead of trying to get the economy moving, go back to acting like the central bankers they are and start worrying about inflation and things getting too hot.
A criticism of the actions of the Federal Reserve, when something is out of its control.
3. I really don't like the coverage. To me, if something needs to be covered, you shouldn't have a position on it.
About the businesses he prefers to avoid.
4. The way to create deflation is to create an asset bubble.
Assets are the real goal in investments.
5. A well-researched machine can make many average investors redundant, leaving behind only really good human investors with exceptional intuition and skill.
Will machines replace the work of some people in the future?
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6. I've always liked to play, and face it: investing is a great game.
The way Druckenmiller sees the world of investments.
7. Soros is the best loss taker I have ever seen. He doesn't care if he wins or loses on a trade.
Flattering his first and most important teacher.
8. If you're early in your career and given a choice between a great mentor or a higher salary, pick the mentor every time.
Having a lot of money does not mean knowing how to handle it, but continuing to learn will lead you to be better every day.
9. The first thing I heard when I got into the business, not from my mentor, was that bulls make money, bears make money, and pigs are slaughtered. I'm here to tell you that he was a pig.
One of the most valuable lessons from mentoring him and the position he decided to take.
10. I've thought about a lot of things when handling money with a lot, a lot of conviction, and I've been wrong many times.
For Stanley, making mistakes is the main step to becoming successful, because that is where we learn to improve.
11. If you really see it, put all your eggs in one basket and watch it very carefully.
Bet it all or nothing, but with a lot of study before it.
12. He taught me that you have to visualize the situation 18 months from now, and whatever it is, that's where the price will be, not where it is today.
About the future profits that his mentor Soros taught him.
13. I think that diversification and all the things that are being taught in business school today is probably the biggest misconception everywhere.
Schools need to start teaching finance in a way that everyone can learn.
14. The key to money management. It's making a lot of money when you're right and minimizing it when you're wrong.
Money management depends on our personal situation.
15. When you don't have money for so long, the marginal benefits you get through consumption decrease considerably, but there is one thing that does not decrease, which is the unintended consequences.
That is why we must be careful in spending more when we cannot recover money.
16. Thirty years is enough.
Talking about his time in the world of finance.
17. There are many shoes on the shelf; wear only the ones that fit you.
A metaphor to explain to us that we should not try to take everything, but focus on one thing that is worthwhile.
18. That's how I started. I watched the stock market, how stocks reacted to changes in economic activity levels, and was able to understand how price signals worked and how to forecast them.
Observe, study and put into practice.
19. You just can't have two cooks in the kitchen; it does not work.
It is better to focus all our attention on one thing than to lose everything because of greed.
20. But what is more disciplined than a machine?
All machines respond to human commands.
21. I focused my analysis on trying to identify the factors that were strongly correlated to a stock's price movement rather than looking at all the fundamentals.
A reference to what you decided to focus on in your study of investments.
22. The way to generate superior long-term returns is through preservation of principal and home runs.
Know how to save and take advantage of the moments that look most promising.
23. Working for Soros cemented Druckenmiller's investment philosophy of "if you see it, you have to do it."
A philosophy that endured with Druckenmiller forever, if he's good, take it.
24. Every time I see a stock market explode, 6 to 12 months later you are in full recovery.
It is very difficult for the stock market to fall to a point of no return.
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25. There is simply nothing to me as invaluable in my business, but in many businesses, as great mentors.
Placing education above any resource.
26. Everyone lives with their rulers in the past and does not look at the changes that are coming.
A reference to the desire to cling to the past instead of building our progress towards the future.
27. Once you make a lot of money, it's incredibly fun to give it away. It is a way to satisfy the soul.
Never lose your humility, not even when you're at the top.
28. What a company has been earning means nothing. What you have to look at is what people think they are going to win.
Business represents a firm and sometimes blind confidence in a bright future.
29. I have given myself a Tesla for my 60th birthday.
Do not stop doing things for you and celebrate your achievements.
30. I love Amazon.
Showing his fascination with Jeff Bezos' company.
31. I believe that good investors are successful not because of their IQ, but because they have investment discipline.
More than knowing everything, it is about being constant and knowing what steps to take.
32. The few times Soros has ever criticized me was when he was actually right in a market and didn't maximize the opportunity.
Taking risks in the face of a good offer, that is the lesson that has become his way of life.
33. If you sleep with dogs, you wake up with fleas.
Assume the consequences of your actions, you cannot escape from it forever.
34. With my business, the way to make big money is to find a great management team and a good concept, and stick with it and add to it over time.
It takes trustworthy people and patience to build something great.
35. Very often the key factor is related to earnings.
The 'secret' behind the success of every business is what allows you to make your profits.
36. Every great money manager I've ever met, all they want to talk about is their mistakes. There is a great humility there.
Mistakes are constant and common within investments.
37. I don't like to sell great products. That's not my deal.
Another business that you prefer to avoid.
38. I learned that you could be right in a market and still end up losing if you use excessive leverage.
For this reason, it is not enough to just know everything about investments, but also to know how to read the movement.
39. Good debt growth is when you borrow money and it goes into the real economy. You make capital expenditures. You build businesses.
The best way to invest money.
40. Overall, I don't think robots and more automation can bring about a utopian world like I imagined as a kid 50 years ago.
Firmly believing that robots will not take over the future.
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41. If machines do everything right, including the efficient allocation of capital and resources, can that be deflationary, can that eliminate poverty? I don't know.
The fact that machines can do everything well does not imply that it is the best option for the development of the world.
42. I don't put Tesla in the Amazon category. They have not proven to me that, as a financial model and an economic model, it will work.
Comparing the growth of Tesla against Amazon.
43. Old folks like Hillary Clinton and I shouldn't be trying to be cool on social media.
Completely unattached to the use of social networks.
44. In my opinion, George Soros is the greatest investor who ever lived.
Not only an excellent mentor, but an investment role model.
45. I love being around children. I couldn't understand why all these 70-year-olds wanted to hang out with me when I was 27. Now I understand, and I am trying to steal their energy like they robbed me at the time.
Even the young teach us new things that are valuable for our life.
46. It's hard to be very optimistic if you look at how humans have behaved historically.
Unfortunately, our worst enemy is ourselves.
47. In my experience, the more successful an idea is, the easier it is to finance. In philanthropy, it's almost more difficult.
Never underestimate the potential of an attractive idea.
48. If you're running a business for the long term, the last thing you should do is borrow money to buy back stock.
A mistake from which many businesses never recover.
49. Don't even think about leaving that mentor until your learning curve peaks.
Stay with your teachers as long as you can and need.
50. Most people in the market are looking for profit and conventional measures. It is liquidity that moves the markets.
It is not necessary to pursue the great immediate profits, but the liquidity that this business offers.
51. I think Bezos is amazing.
Showing admiration for the achievements of Jeff Bezos.
52. If you can see that something in two years is going to be completely different from conventional wisdom, that's how you make money.
Betting on those new things.
53. You can be much more aggressive when you make good profits.
The more you get, the more you can risk.
54. Bitcoin is like anything else: it is worth whatever people are willing to pay for it.
Talking about the value of Bitcoin.
55. If you are very confident, taking a loss doesn't bother you.
To fully enter this world, you have to know how to accept losses and overcome them, because they are inevitable.
56. Every serious deflation I've seen is preceded by an asset bubble and then bursts.
Everything that goes up sooner or later falls.
57. The important thing is not whether you are right or wrong, but how much money you make when you are right and how much you lose when you are wrong.
His way of not focusing on the problem, but on finding a solution with what you have.
58. When you have tremendous conviction in a trade, you have to go for the jugular. It takes courage to be a pig.
Many think that pigs are the weakest, but when they know the necessary tricks, they become the most cunning.
59. Even today, many analysts still don't know what makes their particular stock go up and down.
There is no single explanation for this, so don't worry too much about these changes.
60. I'm going to be a millionaire one day.
A goal that began as a dream and today is his reality.
61. For 30 years I have been responsible for managing client money and it has been a pleasure, but at some point I need to move on.
Success is moving forward even when we think we have achieved it all.
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62. If I were the 'Darth Vader' of the financial world and decided that I was going to do this nasty thing and create deflation, I would do exactly what the central banks are doing now.
A critique of the form of action of the directors of the central banks of the United States.
63. The mistake I'd say 98 percent of money managers and people make is that they feel like they have to be messing around with a lot of stuff.
Another phrase that reminds us not to have more things than we can handle.
64. Never, never invest in the present.
In investments what counts is the future.
65. When you're betting the ranch and circumstances change, you have to change, and that's how I've always handled money.
When we refuse to change, we close a door to growth.
66. I firmly believe that the only way to get superior long-term returns in our business is to be a pig.
Not being ambitious, but learning to wait and be constant.
67. Part of my advantage is that my strength is economic forecasting, but that only works in free markets, when markets are smarter than people.
About his strong point that has given him an advantage in business.
68. If one trade doesn't work out, you are confident enough in your ability to win on other trades that you can easily walk away from the position.
Another of the valuable lessons that Soros left for him.
69. You have to be decisive, open-minded, flexible and competitive.
This is a world of risk, but above all of creativity and constant growth.
70. Focus on central banks and focus on the movement of liquidity.
Banks are Stanley's main target when it comes to investing.