Bill Ackman: belief

Transcript context

…I think we’ll talk about some of that. Financially secure is something I believe also recommend for even just everyday investors. Is there some general advice from the things you’ve been talking about that applies to everyday investors? Sure. So never invest money you can’t afford to lose. Where if you’d lost this money, you lose your house, et cetera. So being in a place where you’re investing money that you don’t care about the price in the short term, it’s money for your retirement, and you take a really long-term view, I think that’s key. Never investing, will you borrow money against your securities? The markets offer you the opportunity to leverage your investment and in most worlds you’ll be okay, except if there’s a financial crisis or a nuclear device gets detonated, God forbid somewhere in the world or there’s an unexpected war or someone kills a leader unexpectedly, things happen that can change the course of history and markets react very negatively to those kinds of events. And you can own the greatest business in the world trading for a hundred dollars a share, and next moment it could be 50. So as long as you don’t borrow against securities, you own really high quality businesses and it’s not money that you need in the short term, then you can actually be thoughtful about it. And that is a huge advantage. The vast majority of investors, it seems tend to be the ones that panic and the downturns get over related and when markets are doing well. So be able to think long-term and be sufficiently financially secure such that you can afford to think long-term.…

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