Cullen Roche Quotes

Modern money is not necessarily a physical item or something with intrinsic value but is merely a medium of exchange and a record of account.

Closet indexing is mimicking an index fund and charging a fee in excess of that charged by a correlated index, even though the fund is not adding any value.

In a capitalist economy inside money exists primarily to disperse the power of money creation away from the government and toward a market-based system in which banks compete to create money.

Before his death the famous value investor Benjamin Graham said: In general, no. I am no longer an advocate of elaborate techniques of security analysis in order to find superior value opportunities. This was a rewarding activity, say, 40 years ago, when our textbook “Graham and Dodd” was first published; but the situation has changed a great deal since then.1 The world is a very different place than it was in the last quarter of the twentieth century during the heyday of Warren Buffett and Benjamin Graham when economies were highly localized and information was difficult to obtain. This era was truly the golden age of the value, or microeconomic, investor. Securities analysis was a highly rewarding endeavor as markets were starved for information, and competitive analysis of information created vast opportunities. But we no longer live in the age of Buffett and Graham. The world today is a global economy in which information moves fast and the competition in search of information is greater than it’s ever been. Computer algorithms scour every bit of news and data for any potential price discrepancy, and armies of PhD mathematicians now populate financial firms to compete with the everyday person in search of value. I think Benjamin Graham was beginning to see this trend unfolding during his career, but the world has been slow to catch up.