Steven Romick Quotes
104 Steven Romick Quotes
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[In August 2011.] When we look at a business, we look for companies to make good decisions for the long term, even if it negatively impacts the short term. The U.S. government doesn't do that. They end up putting parks in that make constituents happy, but don't replace the pipes underneath the roads, because you don't see that.
Steven Romick
[In August 2011.] If you are a lender, why the heck would you lend to the U.S. for a decade at a little over 2%…?
Steven Romick
[In August 2011.] Our job is to protect capital first and get a return second.
Steven Romick
[In August 2011.] We invested in an office building in the Southeastern U.S. It's a three-year, $130 million senior construction loan originated by a friend of mine. We partnered with a privateequity firm to fund the completion of this office building. Our IRR [internal rate of return] over three years should be 11.8%, and that's for a 50% loan-to-replacement [of the building] cost, and maybe a 55% or 60% loan-to-value. Where else today can you get a return that is almost 12%, with what we believe is bulletproof collateral?
Steven Romick
[In September 2011.] We had a deep recession precipitated by a financial crisis that was largely due to an over-leveraged banking system with too many bad loans. The government responded by throwing lots of money at the problem. But were its actions effective? I think it’s really easy to say no.
Steven Romick
[In September 2011.] The U.S. will never default.
Steven Romick
[In September 2011.] We look at three things when we analyze a stock. We want to understand the business, the management and the valuation. When we look at the business, we break it into two parts: the company and the industry. For me, a perfect stock starts with a good business in a growing industry. The company has a good management team with proper incentives and knows how to allocate capital, whether to reinvest in the business, pay dividends to shareholders or use intelligently for share repurchases. Plus, the stock trades at a valuation that does not anticipate the good things that may be coming down the road.
Steven Romick
[In September 2011.] Our favorite investments are those that are so cheap that we feel we really can’t lose much money.
Steven Romick
[In September 2011 on Gold.] It’s a shiny metal that has proved over a couple thousand years to be a great thing to own in difficult times. But what is the right price for gold? I have no idea… It may be the correct bet for a period of time. But at the end of the day, I’d rather buy what I think are great businesses that can generate cash flow and do wise things with that cash.
Steven Romick
[In September 2011.] Our contrarian strategy dictates that we be willing to underperform for periods of time. Over the past eight years, we’ve beaten the stock market in only four years. But our total return over that period is better than the market’s because we have done a fair amount better when the market is down.
Steven Romick
[In October 2012.] Blind faith has gotten us into trouble repeatedly throughout history… Daily life does require we put our trust in others, but we should do so
judiciously.
Steven Romick
[In October 2012.] A good education, deep experience, and a nice title don’t make you right.
Steven Romick
[In October 2012.] If Mr. Bernanke were experimenting in a medical lab, instead of a monetary one, the FDA would require extensive clinical trials proving safety and efficacy before he could release his grand experiment on the American public.
Steven Romick
[In October 2012.] Income hungry investors are buying bonds at the fastest pace in history, with little regard for either credit or interest rate risk. The Fed’s actions embody our gradual shift from laissez-faire to government-managed capitalism.
Steven Romick
[In October 2012 on political decisions like the including the US government debt.] John Kenneth Galbraith once described the trade-off: ‘Politics is not the art of the impossible. It is choosing between the unpalatable and the disastrous.’
Steven Romick
[In October 2012.] Nobody has all the answers. Genius fails. Experts goof. Rather than blind faith, we need our leaders to admit failure, learn from it, recalibrate, and move forward with something better.
Steven Romick
[In July 2013.] We seek the unloved, the out-of-favor or the misunderstood.
Steven Romick
[In July 2013 on being 32% in cash.] Nothing's really attractive, so we've been on the sidelines.
Steven Romick
[In August 2013.] We've been told that 2.4 million jobs were created in 2012, which sounds great. But 1.9 million more people became eligible for food assistance last year too. How strong, really, is this economy at its core?
Steven Romick
[In August 2013.] You want to invest when there's a lot of fear and prices for good assets fall enough to provide a margin of safety. I was investing in 2008 and into 2009 against a very negative backdrop. Unfortunately there isn't a lot of fear today.
Steven Romick
[In August 2013.] I'm not saying we're facing another 2008. I'm just saying things are not as good as people want to believe they are. China could roll over. Foreign investors could finally get fed up with the central bank's money printing and go on a buyers strike. Who knows? When could any potential disaster happen? I have no idea.
Steven Romick
[In August 2013.] Many professionals who may not believe things are all peaches and cream still feel the need to be invested and keep up with the markets. For a period, these trends do push a market higher. Who knows when things will turn?
Steven Romick
[In August 2013.] The Federal Reserve cannot keep managing interest rates at these levels forever. It's an incredibly dangerous strategy. Since the beginning of time, I don't think an economy has successfully grown with government involvement to this degree.
Steven Romick
[In August 2011.] Good things happen to cheap stocks.
Steven Romick
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