Louis Navellier
Businessman United States 1950–present
32 quotes in the archive
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About Louis Navellier on QuoteByQuote
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I'm from Berkeley, California, so I'm fully trained in socialism and all, but basically what they teach you there is markets are efficient and we can't beat them, so we might as well index.
I almost always recommend investors get fully invested, since it's better to put your money to work than to let it simply track the rate of inflation.
Louis Navellier
I had Dell for four and a half years, and its sales are still phenomenal, but their operating margins started to contract, so I sold it in early 1999. There's nothing wrong with Dell! It's a fine company. It's just the business risk they took.
Louis Navellier
We really believe in the earnings. We're very proud that often we do well in the down market. But you know, there are some markets where they just lose liquidity, like 2001, 2008.
After the Versailles treaty, the U.S. could have chosen to become a global economic loan shark, but we didn't, and let a lot of the tab slide. So not all lending and borrowing is bad.
Since we try and take a fairly buy-and-hold approach to our newsletter portfolios and don't sell at every whipsaw, we want to have a mix of stocks that will perform at both ends of the oscillation.
There's something we calculate called an alpha, and that's the stock's return that's independent, uncorrelated to the market. And the only way you really get a high alpha is for something to zig when the market zags.
Now quantitatively we rank things on something called alpha over standard deviation, which is the return independent of the market divided by volatility. Usually, to get a high ranking, you need some buying pressure.
Optimization tells us precisely how to diversify the portfolio, whether I should have 12% in semiconductors or 4% in biotech, etc., and it literally tells me how to diversify not only the industry groups but the stocks.
One of our big challenges with the newsletter is that everyone thinks big stocks are safe. That's not true at all. They're only safe if the money is flowing there.
Louis Navellier