Charles Ellis
The Guardian
What holds, and what fails, under pressure, standards and accountability.
Charles Ellis reads as The Guardian because six decades of work have been aimed not at extracting value from markets but at shielding investors from the structural forces built to erode it. The Greenwich Associates founder diagnoses behavioural cost as a recurring wound and prescribes low-cost indexing as its remedy, steady stewardship over competitive ambition.
“You got a real problem here, and you're going to have a tough time keeping up the kind of growth that would justify selling for 30 plus times earnings.”
“Time to be able to have the experience of compounding where you each Compounding round, you double what you had. Does it really pay off to bin it for the long term and have saved early enough so that you compound a larger amount? But that leap from one to two is not very exciting. Two to four is not much.”
“And I've realized, you know, IBM has got an ability to generate its own growth because it is creating one after another advancement in computing power, and they've got a terrific organization behind it, and they are able to create their own growth. IBM is a true growth company.”
“By making mistakes with the best of intentions, trying to do something really good for themselves, they make mistakes that are costly. And that cost think about it if you think the market's going to return something like six or seven percent. You lose two percent, maybe two and a half, maybe three for inflation. Call it two and a half.”
Masters in Business: “Rethinking Investing with Greenwich Associates' Charles Ellis”
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