If you have information that a company is not as good as its stock market valuation, you don't … - Robert F. Engle

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Quote of the day

Work motivates me. I love what I do and I'm a positive person, I've always liked what I've done as a job - however grim it was.

Robert F. Engle

If you have information that a company is not as good as its stock market valuation, you don't have a way to sell that stock unless you already own it. And so that information doesn't get incorporated in the company's stock price as fast if you don't allow short selling.

Information, Selling, Unless, Way

Same Author Quotes

Risk managers and investment bankers and actually, all kinds of investors took on more risk than they expected. So there was a failure of risk management. There was a failure to recognize how much risk there was in some of these securities that people bought.

Actually, Bankers, People, Recognize, Risk

There are a lot of ways that investment banking models work, but these risks are not internalized by the people that are taking them.

Banking, Internalized, People, Risk, Risks

I don't see what the alternative to risk management is. If it's just getting rid of the models and instead using the smart people who can figure it out? How do you train them? What do you teach them? Do you just put them in a cockpit and let them stumble for 10 years of their life and then after that they're good at it?

Figure, Good, People, Smart, Years

That is, many times we're not risking our own money, we're risking somebody else's money, or maybe that someone is going to back stop or downside, but we still get the upside.

Downside, Maybe, Money, Risking, Stills, Stop

I agree with a lot of the points in Taleb's book, but I don't agree with many of his conclusions. It seems to me that he rightly points out that risk managers miss a lot of the risks, but the conclusion is that he draws, is that we should abandon risk management, whereas my conclusion is we should improve it.

Book, Draws, Missing, Points, Rightly, Risk